All of the external fasteners on my engine are Stainless Steel Socket Head Cap Screws with lock washers with the exception of the hex bolts that hold the exhaust manifolds in place which are alloy steel. The studs that hold the exhaust risers in place are stainless and are OEM. The cap screws that fasten the intake have the threads sealed with RTV silicone while the rest of the cap screws have anti-seize on the threads. I have never had one come loose nor have I ever been unable to remove one.
Although it's true that SS fasteners do not have the strength values of alloy steel, I used them in fairly low torque applications such as to fasten the water pump. valve covers, pulleys, intake manifold, thermostat housing, timing gear cover, etc. The reason that I chose SS for these fasteners is simple, I like the way they make the engine look. I put allot of effort in to keeping my engine in top running condition and keeping it clean is part of that. I'd hate to see rusty bolt heads simply because the paint got chipped off of them during general maintenance. Neurotic? Maybe, but I like it that way.
Strength requirements must however be kept in mind when choosing a fastener. As Paul (prowlersfish) mentioned, never use SS in your shaft flange. The reason is simple, alloy steel has higher shear values which is required at this connection. The following is an example from the "Unbrako"engineering guide on socket head cap screws. ASTM A574 alloy steel has a tensile rating of 190,000psi where ASTM F837 stainless steel has a tensile rating of 95,000psi. How does this apply to a prop shaft flange? A 3/8" alloy steel bolt has a single shear body value of 12,600 lbs and a 3/8" stainless steel bolt has a single shear body value of 4,470 lbs.
At a high shear connection such as the shaft flange I think the choice is clear.
Hope this helps
