I just went through this process with much help from these threads, so first of all...thanks!

A couple of additions I have to add for those still going to try it. For comparison, I havce the '05 LSV. I can't reach the packing nut/shaft through the engine hatch, so have to go through the hole under the rear seat. Second, my boat has a bunch of wiriing on the port side, so to access the nut with any tools, I had to use starboard side (left side when facing the stern from the inside of the boat). I took off the water hose to the tranny to make it simpler (as well as my ballast water strainer).

I used 2 1/4 inch channel locks for the packing nut (the big nut), and my smaller channel locks for the jam nut (the skinny nut).

All of my directions are listed as you are sitting in the boat facing the rear.

1. Loosened the jam nut by turning clockwise.
2. Loosened the packing nut by turning counterclockwise.
3. Pulled the jam nut towards me 'up' the shaft (about 4 inches)
4. Fought and fought to get the packing out until I realized the easiest way to do it. Get a really small screwdriver or 'pick'. Reach into the packing nut and press until you feel the slight 'give', indicating you are on packing material.
5. Then, while applying pressure to the tool, slowly rotate the nut with your other hand. Soon, you will feel the tool 'dip', indicating you've found the seam of the packing thread.
6. Now dig at that seam like a madman, rotating packing nut to help you dig it out. (The first piece took my 15 minutes to figure out...the next 3 pieces took about 5 total)
7. I had 4 pieces in there. You'll know you are done when the inserted tool hits metal and not the squishy material.
8. I then cut 4 pieces of 4 1/8 inch goretex packing material that I got from skidim (like $12)
9. I put 2 pieces in, went through the whole tightening/loosening as instructed, then put the next 2 pieces in and packed again, and finally tightened it up as tight as I could with my hands.

It's funny how it seemed like it was so hard, but now I could do it in 30 minutes from start to finish. Appreciate all the help you guys out there provide...it has been saving me serious cash.