From memory, the packing should leak about 1 drop/second while underway, and should not drip at all while out of gear. If drips exceed this, tighten packing maybe like a quarter turn at a time. Once you can't crank it anymore, gotta replace.
REMOVAL:
Now, excerpted fromt he Toyota procedure: Remove boat from water (duh). Remove cotter pin and loosen nut until it's separated from gland. Remove the two separate windings of teflon packing.
If you can't get the packing out...Loosen two hose clamps holding packing gland, twist and remove gland away from the hose. Push out packing from the hose side two remove the two pieces.
INSTALLATION:
Cut two pieces of Teflon packing (5/16" - haven't found it myself yet) to 4 1/2" length (no mention of cutting at angles). Insert one between the washer and the bottom of the boat (?). Push packing into housing and insert next washer.
Insert next piece, offset ends, between washer and jam nut. Tighten jam nut hand tight. Insert complete packing gland into hose and secure with hose clamps. Lossen jam nut slightly and insert new cotter key.
Put boat in water, adjust to set drip at 1 per 5 seconds (?). Readjust as needed to a slight drip.
Pete, if I sent you that powerpoint, maybe you should try to get it posted. I'm on travel until next Friday, and the PPT's at work.
Good luck.
Oh yeah, maybe we should take Gearhead's advice and spring for a dripless packing (think they're about $200 at SkiDIM.com.