I don't use anything as a gasket, myself. But, kaowool is only a concern if it is blown about by a flame or air blast as small particles. As far as worrying about it being near the food, it is the same thing that is inside many oven walls, and non-toxic. The fibers should be of little concern in food contamination, but I agree that one should avoid getting kaowool all over the place. FWIW, kaowool's MSDS sheet does not list any precautions beyond avoiding creating dust, and only lists it as a normal mechanical irritant. They list nearly every item tested as a
possible cancer risk., because everything ,including most drinking water, is listed are a possible carcinogen by the State of California.
http://www.fabricationspecialties.com/pdf/kwblanket_msds.pdf
I left out an important detail - My oven is gas, and I try and place the tip so it sits an inch or two up from the oven floor. I agree that an electric oven could be a problem. I used a thermocouple that could be clipped to the blade and checked different places on the blade. The end closest to the bottom got a bit hotter than the blade while the burners were cycling on, but quickly dropped back as the flame cycled off. The swing was about 15 degrees. The tip end ends up out of the oven for the second hour of each temper cycle, so the final edge hardness came out pretty even, with the tip perhaps a tad more tempered than the edge (which is not such a bad thing).
You could say that the tip ended up tempered at 415 for two hour and the blade edge got tempered at 400 for four hours.
The tang gets drawn soft with a torch later, and on a single edged, non-hamon blade, I often draw the spine down,too.