First loosen the lock nut (aft-most nut). (I like to use packing nut wrenches -- Home Depot for about $15). Put a wrench on the lock nut and the compression nut (fore-most nut). Then turn the compression nut, one "flat" at a time. After you turn the nut, check the drip rate (depends on what type of packing material is in the gland, but on most you should get no leak withe engine off). Then try to turn the shaft by hand to get a feel for how much friction is on it. You should be able to turn it by hand (I turn it at the transmission coupler); if you cannot, you have over-tightened. Then, with a wrench on both nuts, turn the lock-nut to lock it against the compression nut. Now, run the engine in gear (tighten up dock lines if in a slip -- don't try this at a mooring!) at about 1500 rpm and check the drip rate again. If it drips too much --- more than a few drops per minute, you may have to the procedure all over again -- but no more than one "flat" on the compression nut at a time. The idea is to adjust it just enough to keep the gland no more than warm to the touch.