Okay problem solved. The teflon tape is only required where the fitting threads into the catch can. There is supposed to be a little black O-ring that sits in the threaded cap. Mine must have stuck to the bottom of the catch can spigot instead of staying in the cap and then fallen into my drain/coffee cup. Just found the cup still upside down in my oil used oil collector/ pan and low and behold there is my o-ring stuck to the bottom of the coffee cup.

Thanks BEANER !