What is the recommended gasket sealer to use on the axle housings now that I'm ready to put everything back together? Also, what kind of bearing grease should I use on the axle bearings?

Permatex non hardening and the red or black slippery kind. If you have new inner and outer seals, just pack the bearing good. Don't over do the use of the cup. Forcing too much grease will just push it past the seals and into the housing or out on the brakes and wheels. For many years there was no inner seal so the rear bearings needed to be greased often. Now with the inner seal in place the rear outer bearing does not need to be "greased" nearly as often.

Mark, what kind of bearing grease would you recommend?

I started using the red tacky grease which worked well and just this year I switched over to the heavy duty Lucas green. I have modern seals inside and out so there no leakage on the brakes. Just don't over pack as the grease will tend to expand a little when it warms up. What I like to do is when I have things packed as well as I can I then put the rear on jack stands and put the car in direct drive while the tires are turning I push some more grease in the bearing so to make sure its full. I have brass grease cups with zerk fitting hidden in them.

One thing to remember is that today's grease is far better than what they had back in the 20's

Wheel bearing grease. I don't have any particular brand nor will I make any recommendation on what brand.

I agree on Permatex #2. It's been around forever and still works.

Best gasket sealer bar None is the Permatex ULTRA Black or does come in Grey. The old # 1 or 2 was a fantastic product but many here have found the new improved products developed recently will out perform. Ultra black is not good for gasoline but if you clean the surface of any oily residue you'll not have a leak. It's a product many OEM mfg's use today.
Try it you'll like it!

I'm with Gene, ultra black or grey. They have come a long way with gasket sealers and such. I made a living as a mechanic and gave up Indian head shellac and #2 Permatex years ago. KGB

There is now a blue RTV that is gasoline resistant. It says so on the front of the tube, I had a hard time finding it.
I still use Permatex 1 on core plugs, but have done several engines with back or grey RTV.
You may have noticed for several years now modern engines are mostly glued together with grey RTV.

I like the black RTV also as it works well and matches in with the other black guuck on my engine. Nothing looks more out of place on a T engine than red or orange or blue RTV sticking out of a seem.

Please remember several things.

1. More is not better. It will only squeeze out and dingleberries can get loose in the engine or other subassembly.

2. If you want a good seal but plan to remove that part soon, just mildly oil or greese up one surface and that part will come apart easier.

Just be careful and not buy the cheap "black RTV" stuff. The Ultra Black by Permatex is much better and not the same. Don't ask how I know.

The "Right Stuff" by Permatex is also the best but has a shorter work time but needs no curing time if your in a hurry. It's a bit harder to find and I think more $$.

My experience is if you have any oil or grease on the parts it's likely to have oil seepage. I use a putty knife or other thin blade to insert and split apart places like the oil pan inspection cover.
YMMV