To quote the factory procedure: " Apply a light coating of oil to
threads and underside of cylinder heat bolts."  This is pretty much
standard procedure because lubricated threads have a far more
predictable coefficient of friction than dry.  I can't at this time
think of any engine that calls for installing the head bolts dry, but
there may well be.  If the bolts go into water passages case sealer is
essential.  The sealer is a half-assed lubricant.  An example would be
the ubiquitous Chevy small block.  For a couple random samples I
looked up a 92 Honda Civic and they called for lubing  the head bolt
threads but NOT the bolt heads or washers (???).  A 4.6 Ford V8 called
for lubing the bolt heads but not the threads.  I think the mandatory
new head bolts come with the threads coated in this case which is
common.

Don
www.donsautomotive.com

All Honda and Toyota engines require all head bolts and any associated
washers to be lubricated with engine oil prior to installation and
torquing.

Ask me how I know. C'mon, ask me.

I've seen some shop manuals direct you to dip the bolts in engine oil
before installing, but I'd certainly believe that some spec it one way
and some another.  The last engine I actually put together was a
Studebaker V-8 though so I wouldn't hazard a guess what standard modern
practice is.  I'd defer to the FSM, unless you are using aftermarket
fasteners like ARP, in which case I'd follow their instructions.

FWIW, ARP fasteners, or at least ARP's VW rod bolts, *are* torqued with
lube.

nate