Nothing wrong with big aluminum wire if it's terminated correctly. #14 and #12 Aluminum wire sucks, but you can work with it -- use purple wirenuts to pigtail it with copper, or use new CO/ALR rated devices. (the cost is about the same either way; purple wire nuts are expensive and you'd need several per device. DO NOT use devices smaller than 30A that are listed CU/AL, that was the problem in the 70's more-so than the wire.
Whichever route I took, I would put that black goop on all the connections unless the connector specifically said not to use it.