Yeah, that's what I'd do to prevent leaks. Permatex Super Black sealant works pretty good too, Reinzosil is even better, and it'll hold the gnarliest synthetic diff oil in an old fretted VW transaxle. Another thing you can do is make grease pudding, mix some motor oil with bearing grease. I think gear oil is best though, I did some reading on it before putting it in my geared hub, and it cushions shock better than a grease or motor oil would on the teeth.
Dammit, you're making me want to do a rack mount build, maybe I should make my Motobike rack mount if the project stalls. Dax has a nice kit I was thinking about.