With 60 hour work weeks and my daughter's HS graduation - my project took longer than I'd planned, but it turned out great. I secured the aluminum stuffing box to the hull with G-Flex. I made a peanut butter consistency paste with thickener to bed the box to the hull, and before it had set, I then applied strips of mat around the perimeter then covered the entire box with a layer of mat - this was all covered with standard G-Flex. I talked to West Systems Tech support about what product to use, etc. They are great, really know their stuff. I installed a new shaft log (hose). My packing is the Gore stuff just installed last year, so I didn't replace - easy enough to do later if needed but I don't think it will be. The alignment was dead on as before. The prop spins really easily. It did before but now it's crazy easy.
Bottom line, due to the nature of a non-mechanical fastening between the aluminum stuffing box and a fiberglass hull and given there will be some 'impact' etc from general use or rough water - I suspect many boats of this vintage will develop leaks around here. If you have an '80's era boat and the bilge stays wet, and you've check the other likely culprits (rub rail, exhaust, etc.) look for pin hole sized water droplets around this area. I'm not going to paint my repair, as it's easier to see of something is going on through the resin.
Installed new hoses, pulled her out of garage - hit the started and fired right up! Sometimes old-school technology just works