Sounds like a good project you've got going there -- nice upgrade!
The answer to your question depends in part on what kind of fittings you are using. Many of the connections now used in propane systems have flanges that are sealed by compression or o-rings. In those cases, it's not necessary to use tape or other.
If compression flanges or o-rings are absent, and it's just threads doing the connecting, I've had very good luck with standard teflon tape. Make sure to wrap it in the same direction that the threads will be turned in. Otherwise, it will bind up as you screw the two pieces together. Also, be careful to make sure the tape doesn't make a flap over the opening of the hose -- I once spent a few hours troubleshooting a lack of flow through only to discover the tape was blocking the orifice.
Remember to always pressure test the system after making these connections, and on a regular basis throughout the season. Good luck!
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Pacific Seacraft Crealock 31 #62
NEVER CALLS CRUISINGDAD BACK....CAN"T TAKE THE ACCENT