Well, that blue "mystery" goop is kinda inexplicable. Some mfg used to prelube the gaskets, but if it's flaky (I'd say, so is the filter) If you can get fleetguards filters you'll never be sorry. However, if your stuck with them, and have to use them, I would do it. The oil
comes into the filter from the ring of outside holes if you will, all filtered oil
is sent back up the center (spin on htread) portion, meaning that the blue mystery goop would be held in the filter pleats and not make it into the oil system.
Given my drothers, I'd pitch
em. Ps, Fram has always been the "low" side of the filter arena.
Best of luck