They are expansion plugs, so simply fitting them in straight and even is sufficient. I have an aluminum rod that I use to set them -- a tap or two on the rounded portion will set it. Some use some nail polish to make sure of the seal (color presumably your choice). I don't use any kind of sealant and have never had a problem that I am aware of.
To get the old ones out, I carefully drill through the top, then remove with a drywall screw -- seems to work for me. Danger, though, is drilling too far. Might initially try a punch to open a hole and allow you to pry them out.
Underneath, there are typically two or three small holes that need to be squeaky clean.