In order to fix this leaking around the handle,
you first remove the screw that holds the handle
on to the valve stem. Next, you remove the
packing nut - a large adjustable wrench will work.
Then you need to remove the old packing gasket
material and the brass packing washer.
Clean up the brass packing washer and replace the
packing washer, if you can find one in the size
you need. Look for a flat packing washer in your
hardware store. You can also check with a plumbing
supply jobber. It doesn't have to be the grey
clay-like material that you removed. I searched
many stores without success. I fashioned a new
packing washer out of 1/8" thick rubber, and it
worked fine. Make sure you put some thread dope
on the packing nut threads before you re-install
it. Don't over-tighten the packing nut; stop when
you get resistance. The rubber material will fill
the gap very nicely, and the leaking around the
handle should have stopped competely. There is
nothing wrong with the design of the faucet. The
correct order of re-installing these parts is:
(1) the brass packing washer
(2) the new packing gasket material
(3) the packing nut
(4) the handle
The packing nut needs to be tightened around the stem, if that doesn't do it, the packing needs to be replaced.
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