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Retorqueing while engine is out

Engine

Vehicle Information: Model (914/4, 914/6): 914/4; Year: 1975; Engine (type, size, modifications): 2.0L, basically stock; Total Mileage: 120K;

I currently have my 2 liter out of the car, and down to the long-block. Before reinstalling it, I want to renew all the gaskets that I can without splitting the case or pulling the heads. After removing all the tin, I discovered that I have a small amount of "blow-back" that appears to be coming from the cylinder to case seal on 3 and 4. Does this mean that I am due for a rebuild, or is this normal? I would like to know if it is ok to retorque my case bolts and head nuts to make sure that everything is still in spec, and hopefully, drip free. I was told that the engine was recently rebuilt before I bought the car a couple of years ago, and everything that I have encounted during disassembly indicates that it was done by someone fairly competent.Also, what type of gasket sealant would you recommend for the oil related seals such as valve covers, filler neck, etc.?

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