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That's the problem with a brass plug and aluminum housing; they're both soft. The plug does not need to be super-tight, but it sounds like someone has over done it in the past.
Short of welding and redrilling, or heli-coiling, I don't know what to say. I don't think either is an option without disassembly, which I doubt you want to get into. It's a very shallow thread, and the ring gear is right there, millimeters away inside.
I'd go with plumber's putty after cleaning the threads as best as you can. If the leak is not bad, I would just monitor it.
Andrew
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