Make sure that the pivot (inside) and the screw are oil free. A Q-tip can help with the pivot, along with a degreaser of some sort. Do this before applying the BLUE loctite, and then a drop will do you. If you use too much it can be squeezed out and into the pivot which could really make the knife hard to open. Once you screw the pivot screw in and get it where you want it to be, set the knife aside for 24 hrs so that the loctite can cure. Done properly, your problem will go away.
I've never use teflon tape, but I imagine it would also work excellently.
I capatalized BLUE because loctite comes in different colors. Blue is medium hold, while purple provides a lesser hold. Red loctite gives the strongest bond, but on a screw the size of the pivot, you may as well weld it as to put the red on it. That stuff is STRONG!
Hope you get it working like you want it. I am so up in the air about the SR-1 in Raindrop Damascus. I am comtemplating switching from buying a Pat Crawford Kasper folder, and getting the Raindrop Damascus SR-1. I already have the violet edition, and love it, but the damascus would be the highlight of this series. My only problem is trying to find out how well this stainless damascus cuts, how sharp you can get it, and how long it will hold that edge. If anyone knows, please let me know, not that it will make much difference as I'm already sold on the knife!!