The o-ring sits in the groove at the base of the valve, valve goes in hole, gnurled ring screws onto valve seating it tightly into the well of the rim. Simples. Sealant? I make my own, to a recipe I got from this very site six years ago, when I bought all the ingredients. I've only had to replenish one in that time.
This will do one wheel.
Tbl spoon Slime
Tbl spoon Art Latex
Tbl spoon concentrated windscreen washer liquid
1/4 cup water
mix well, put into tyre
Repeat
I've only had to buy one new bottle of Slime, and the old one I use for filling duties; I poured one lot of mix in, marked the bottle, then added the second lot. Got some clear plastic tube, heated the end and forced it onto the bottle nozzle, then heated the other end and shoved it onto the valve. Now I just mix up two lots, fill the bottle and squeeze until I get to the line, then do the next tyre. I use disposable drinks cups to mix in. If the bike is ridden regularly, then the mix will probably last several months, but it settles and hardens if the bike is just left for longish periods. Just put a new tyre on my Inbred, a Bonty, and the old one had just started to leak air, and the mix had all but disappeared, and I honestly can't remember when I last put any in, it must be months ago. It works really well, sealing cuts up to 3mm, as well as thorn holes.