You never use lube on the threads for the block, the lube is strictly to keep from getting false torque readings from friction in the threads when torquing the nuts. If you use lube on the block side they will not seat completely. Those block holes need to be completely clean and dry, free from oil and any other liquids. Use an allen and hand tighten into the block that is correct.
On a side note, standard ARPs are junk, they will stretch easier than most manufacturers non-torque to yield bolts. The advantage is a larger surface area for more even clamping force. If your car is going to make any kind of "real" power you should look into the L19 style head studs if they make them for your application.