Gerber 2 and 3 handle tub and shower faucet page 4.
To replace the washer remove the screw replace the washer with the correct size and tighten the screw. When reinstalling the new or old stem make sure the stem is in the open position, the base where the washer screws on should be up against the stem body.
Be careful not to over tighten the stem if you do you will break the threads off in the faucet body. don't forget to grease the threads.
The diverter stem is different from the hot and cold Gerber stems it has the same 1/4" washer but also has another rubber boot that causes the water to go up or down if this boot is damaged you will get water coming out of the spout and the shower head at the same time.
Once again grease the threads and take note of the plastic washer and do not over tighten
Now you will think that a new stem comes with the packing nut set just right, it does not, it comes just hand tight and needs to be tightened.
Because I know this faucet will need to be repaired in the future I remove the packing nut and apply plumbers grease to the threads. then I screw it back on hand tight for now.
This threaded nipple does not come with all of the Gerber 3 handle models some have a chrome sleeve with threads on the inside that screw on to the stem instead of into the packing nut,
The threads on the sleeve need plumbers grease too. Place some grease on the threads of this nipple and screw it into the packing nut.