Permatex Copper Spray-A-Gasket Hi-Temp Adhesive Sealant works great. It's a high temperature automotive gasket cement. Use it like contact cement, just spray it on the blanket, let it get tacky then press into place. A small spray can costs about $4 at your local auto parts store. In areas that are exposed to high radiant heat, like near the exhaust cone/pipe inlet, I cover the blanket with aluminum tape (available at Home Depot and hardware stores).

http://www.permatex.com/products/Aut...ve_Sealant.htm

Joe