Yes as Gadge said not silicon.I use one called form a gasket by permatex it's just a paste.Looks a bit like this.Got it from Super-cheap Auto.
[Linked Image]
As far as your bearing and seal kit is.If you went to a bearing shop it would be close to that price anyway.I don't really know as it has been a while since I bought a set.
Quote
just in-case, are these crankshaft used in all the older 2stroke victas ? or is each different ?
Depending on year it was made these are common cranks so if you need to find one they are easy to find.That's another reason why I'd get another one.There is still plenty to find.
Here's a parts list of it.
[Linked Image]

Quote
Does the oil in the 2 stroke lubricate them or will sealed bearings be ok ?
Yes the oil does the lubricating so if you buy new bearings and they are sealed then remove the plastic seal parts so the oil can get in.

Here for a good time,not a long time.