My method:
At the dock, start the engine and put it in gear, maybe 1000 RPM forward or so. Loosen/tighten the gland till you get a drip every few seconds or so. When you get it right, go to neutral, then reverse, then forward again and make sure it is still dripping every few seconds.
Go back to neutral and make sure it is NOT dripping. Check it again in a few hours to make sure it is still not dripping.
I'm paranoid so I will generally check again that it is both dripping when turning, and NOT dripping when not turning the next time I visit the boat.
I put a piece of paper towel under the gland so i can easily tell whether it has been dripping or not at a glance...
I've heard varying opinions on this, but thats what works for me.
-dan