I know, I know this is an old thread but I just have to put my two cents in on this.
I've had my gen 3 for about two years now... its a beater/wip/pos car for 500 dollars I had to buy because my car got reposessed - long story that no one generally believes so I'm going to leave it out...but I'm not bitter about it or anything.
Anywho, the key to doing his repair regardless of what you may have read elsewhere is to have the proper tools to do this job.
Also if your going to do this job you might as well replace the spark plug tube rings that sit on top of the valve cover but under the valve cover nuts.
Here is what you need to do this job:
Parts/etc:
new Spark Plug Tube Rings (get these at autozone or equivilant - cheaper than the dealer by about 8-10 dollars0
new Valve Cover Gasket (get the one from the dealer - its cheaper and better quality)
Spark Plug Tube Nuts -30mm - (optional - the guy I bought the car from, who did a head gasket on it overtightned them and crushed them - I didn't buy the replacements, I got the 'nuts and bolts' discount from the local junk yard
High Temp locktite
Tools:
Spark plug tube extractor tool - (This runs about 60 dollars - is it worth the buy? Probably is if you a pro mechanic or an above average DIY'er who is constantly building 4 cyl engines that all have spark plug tubes. For the rest of us we have to improvise; I've read other posts that say that they were able to get the tubes out using vicegrips or even pliers.

well only if you want to A, cush the spark plug tubes. B, risk putting small metal shavings in the oil. Vicegrips and pliers will score and mar as they slip on the pipes as you feebely try to break them loose potentailly dropping metal shavings amongst your valves. The only substitution tool that should be used for this is a
pipe wrench - sometimes called a
monkey wrench. If used properly they will not crush or scrape the tubes and give you much more leverage. They are about 10 dollars at Lowes and you have the added benifit of being able to use it in plumbing applications.)
Torque Wrench/Ratchet - Must have for any DIY'er who wants to do the job right the first time. Torque it down to spec - because Toyota says so.
Flat head screw driver - you may need it to get the valve cover up and the old gasket off.
I guess since this is becoming a guide/walk through I might as well finish:
Step 1: Remove the valve cover by removing the 4 30mm nuts that thread on to the spark plug tubes.
Step 2: Disconnect any breather type tubes from the valve cover (including the tube going to the PCV valve)
Step 3: Remove the valve cover
Step 4: Gaze in amazement at how there is an abesence/overabundance of sludge.
Step 5: Using the
pipe wrench remove the tubes (making sure to keep them in order)
Step 6: Clean the threads on the tubes with a wire brush.
Step 7: Apply the lock-tight to the threads
Step 8: re-install the tubes and tighten down with the pipe wrench
Step 9: install the new valve cover gasket
Step 10: Replace the valve cover and put the new spark plug tube rings in place
Step 11: Using the torque wrench, torque the spark plug tube nuts down to 17 ft lbs in 3 passes - I went with a 6, 6, 5 pattern.
Step 12: re-connect all breather lines to valve cover.
Note: if you use the tube extractor tool you only need to do Steps 1(only remove the nuts, not the valve cover),5-8,10,11 and replace "pipe wrench' with "Tube extractor tool"