Making a Pipe Connection Water Tight
Assuming you didn't overtighten or cross thread, did you put the tape on the right way? The correct way to use teflon tape is to wrap it with (i.e. in the same direction as) the threads so that when you tighten the fitting the threads don't loosen the tape and cause it to be pushed out of the way. (I suspect that this is probably what happened in your case.) Regarding the number of wraps, a couple should suffice.

Once you screw the fitting together, you should not see and tape bunched up at the edge of the female fitting (which you won't if you wrap the tape the right direction).