Teflon tape is great and can be used. You will get conflicting answers here, but the fact of the matter is you can use it but don't go all the way down the treads. I use it on my oil drain plug and its perfect. When I take it out the next time to drain the oil, I completely clean all the threads and put new tape on it.
Like Crash said, they are both the same, just applied differently. If you use tape, don't put it before the first thread and wrap it in the direction of the threads so that it tightens as you screw the fitting in.