http://www.arp-bolts.com/pages/products/pa...s/technote.html
from arp's 'tech tips' section, says head studs should be finger tight.
http://www.arp-bolts.com/pages/products/pa...ks/how_tos.html
from arp's 'how to install' section, says loc-tite is okay, as long as its a semi solid.
and I guess I forgot the headgasket in my little diagram above, I suspose you need one of those as well

(thanks ryan).