Help with Water Pump replacement

[aquadj]

My motor is a 2007 - 250 / 4 stroke with 300 hours. This is my first time changing a water pump and I have a question about how the gasket seats into the housing. The housing seems fine, no melting or distortion, but the outer edge where the gasket sits (opposite the intake tube) didn't have an inner groove for the gasket to sit in. For about 3" around the curve, the gasket just sits against the outer edge of the housing and then presses against the stainless cup. Is that right or did part of the track break or wear away?

Also, what should I use on the 4 bolts that keep the housing in place - locktite or anti seize?

Thanks for any help!

[boats.net]

The oring does fit between cup and groove on water pump housing.
Use grease on all bolts and shaft splines.

[aquadj]

Thanks for the response!