I wanted to comment on this because I have a Pontiac from the 60's and they suffer from the same problems you all are describing:
New rope seals just don't work when rebuilding the engines.
The problem has been described (for Pontiacs) as the removal of asbestos as a material to use for the rope. The substitute material is not nearly as good. When I re-sealed my Pontiac the rope seal included in the Fel-Pro kit appeared thin and not-supple. (only way I can describe) so I didn't even give it a try.
Some folks have switched to all neoprene two piece lip type seals on Pontiacs but with very mixed results, just like our Willys engines.
A solution I went with for my Pontiac is a new-fangled rope seal offered by a company called "Best Gasket". They make replacement rope seals with a material infused with graphite. I got one for my Pontiac for under 20 bucks, and it was nice and supple looking. Their kit includes a shim in order to precisely cut it to correct length (after pressing each half into their respective block and cap halves), for the proper crush at the seams when put together. It worked perfectly for me; no leaks for some thousands of miles.
I know, not a Jeep, but I was impressed with this graphite rope.
I looked them up and they do show some listing for Willys Jeep stuff.
Perhaps someone can comment?
http://www.bestgasket.com/