Outside faucet leaking - replaced with kit, still leaks

I'm trying to repair an outside faucet. What happens is that when there is any resistance in the line (like even a hose hooked up), water shoots out from around the handle. It gets all over the house and sometimes all over the person trying to work the handle.
So I finally tracked down a replacement kit at a plumbing supply shop, and replaced all the innards of the faucet. But it still leaks! Is this just designed to do this?
Here is a pic of the faucet with the new kit installed.
http://img82.imageshack.us/img82/8617/water1ql0.jpg Everything inside is new except the seat. The whole thing is soldered in and the inside is finished so I can't just easily replace the whole unit with a new one.
Here is what it does when you turn it on:
http://img82.imageshack.us/img82/7171/water2cy1.jpg
Thanks for any help.
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On May 15, 9:01�pm, snipped-for-privacy@yahoo.com wrote:

leaks around the handle are easily solved by tightening the nut around the handle 1/2 turn at a time if you have the old parts try reinstalling them
i have never seen a faucet kit like that
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snipped-for-privacy@yahoo.com wrote:

you sure its put together properly? Not just the way it was before, but to factory spec?
--
Grandpa

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Grandpa wrote:

I had the guy at the plumbing supply shop put it together for me to make sure it would be correct. I just unscrewed the old assembly and screwed the new one in.
I guess I'll leave the water turned off for a day and take it back out, then try to make it over to the supply shop over my lunch hour. I'm guessing something just isn't put together right.
hallerb wrote:

Hmmm its brand new, and I did tighten it all the way in (there's just one 'nut' to turn, you turn the whole thing inward to install it).

Its a Woodford Model 25 I believe:
http://img235.imageshack.us/img235/2154/woodfordzh2.gif
Could it be a problem with the vacuum breaker? (part 10 on the diagram). I found a post elsewhere on the internet that said in part:

But I'm not sure what part they are taking about that is leaking.
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From here, it looks like the packing nut has been prevented from fully compressing the packing because older parts of the valve are blocking its travel. Just a guess. Not familiar with that faucet.
SJF
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