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I used Teflon top-hat seals. I consider them to be far superior to the original o-ring setup, and I've used them on all my builds since about 2008 (Rootes, BMC, Triumph, etc.). For some reason I don't have many photos of them, but here you can see them on the 1769cc build for my own '67 Series V back in 2013 (photo taken before I trimmed back the guides inside the ports). Installation of the seals required grooving the valve stems slightly prior to installation to latch them on nicely. This 'Beam build was a little different, but on most builds I just install them on the intake stems, and use Viton o-rings on the exhaust.
I install it in the usual place, in the groove designed for it in the collar. Nearly all OHV engines were designed with this sort of oil control back in the day. It kept an excessive amount of oil from running down the stem, but still allowed enough to lubricate the guide. The problem is that they harden due to engine heat and oil by-products and then fail to seal adequately. More modern materials greatly extend this life.
