Replace the gaskets. It should be a simple fix.
On yamahapartshouse.com, it looks like it runs about $86.00, which is relatively steep for an OEM gasket. I've seen others available online in the $20 range, which I'm guessing are not OEM. Being that I've never really messed with it before, how true should I stick to OEM? I mean, I paid $800 for the bike, just for an older machine that I can learn to ride on. I know that they can be money pits, but I don't plan on this being my "forever bike".I looked up the price of the cam cover gasket... Be ready for sticker shock.
It's common practice to use a sealant only on the half moon ends of the gasket. Yamabond or (aftermarket) ThreeBond 1184 Gray is the right stuff.
Do not use an automotive sealant that hardens or silicone.