Awesome information guys thank you.
Maybe mine was so tough breaking in because I was using too big a packing size? The old stuff I pulled out was 1/4" but maybe the previous owner measured wrong. This may depend on the packing gland and nut as well?
As an update, packing seems to be doing good and not overheating anymore. Only time it gets warm (and I can still put my hand on it) is when I run above 3000 RPMs for an extended period of time.
On a side note, I can cruise at 2600 RPMs doing 18 knots with the tabs down a little bit. How did they not make more of these hulls

Loving the switch to the inboard.