josh...just josh
Tape is all that i use and all that I have ever used now 10 years. I feel the tape is the better way to go and creates a better seal. I also feel that is important to turn the BP in until it seats on the shelpf in the barrel and just as important to sung it down on the shelf. A loose plug has the potential to create big problems. With the plug seated snuggly on the shelf in the barrel you will seal a lot of the blow back from ever reaching the treads.
Your problem... I guess I am not to worried about it send it back to Knight and address it to Gordy Edward's attention. Let him take a look at it and make a decision. He will do right - he always has... trust me.
I am going to say this off the top of my head and without seeing your gun or the plug - but I am betting you it is not as bad as you think.
mike