Yes it's the gland nut seal which you need to have set up properly to address the leaking - albeit the whole pump needs to be set up properly obviously. Trust you get to the root cause of the leak. How much is the leak in drips per minute?
Believe this is the Fynspray pump manufacturer - you could call or email them?
www.whitestarproducts.co.nz/products/pumps-products/gear/gear-pump-1/Sorry I missed your 2nd post
I seen the upgrade kits and I wonder if the gland seal is different to mine, the one I bought also only has a flat part on the shaft that a bolt through the pulley presses on, no key which I don't like, I put loctite on the bolt but still not comfortable without a key, maybe I should get the upgrade kit which has a replacement shaft with pulley key
Yes would be good to identify what gland seal you have. For such a small pump with relatively low torque the set screw onto the shaft flat should be ok as long as the set screw is torqued up appropriately and is locating right down perpendicular to the shaft flat. Loctite 243 on the set screw as you say. I guess the instructions you have don't indicate set screw torque to use...........perhaps ask whitestarproducts when you contact them.
Suggest persevere with the seal etc and get the whole pump set up correctly including bearing lube before going to the upgrade kit?