FWIW, the supervisor of the Machine Shop in the shipyard I recently retired from advised me to NOT use Teflon packing around the propeller shaft in my Hatt. I did not listen and over time enough of the Teflon melted to make the packing material stiff and it became increasingly more difficult to adjust the drip rate. These machinists use teflon packing ONLY in pumps and use other types (e.g. graphite) for shafts that spin at faster rates.
Southern Comfort
Portsmouth, VA