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silicone on the threads won't do much for you. the fluid should not be getting there in the first place.
the reason the speedo is leaking is because the speedo seal is bad, possibly along with the speedo gear. that's where the fluid should stop. there should never be any gear oil in the cale or on the threads.
there is a speedo o-ring also located on the outside of the speedo bullet. it's the part that has the threads on it; the speedo gear goes thru it. unscrew the speedo cable, remove the 12mm bolt and tab and gently pry out the bullet using a screw driver in the slot previously occupied by the tab. should come out fairly easily. if the o-ring is not plyable or has a major flat spot around the circumference then it's time for a new one. they're available at the dealer for next to nothing.

last but not least, you should only tighten the speedo cable as tight as you can with your FINGERS, not pliers or vise grips. the threaded part of the cable can and will break otherwise and then you'll be buying and installing a new cable.


hth

georg @ valley hybrids
 

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let's try this one more time:

1) unscrew speedo cable from speedo bullet or "circular thingy"
2) remove bolt and tab from speedo housing
3) using a screw-driver or small pry bar, gently pry speedo bullet from speedo housing
4) remove old o-ring from circumference of speedo bullet and replace with new o-ring.
5) reassemble and top off t-case


hope that makes sense
 
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