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When cruising up a channel or something, I let go of the rudder and turn the engine until the boat wants to go straight, then lock the engine and steer with the rudder.
When maneuvering in close quarters, you can turn much tighter by turning rudder and engine together, and you can tighten the turn further by leaving the centerboard board down.
In certain situations, such as docking, it can be useful to turn the rudder one direction and turn the engine in the other direction and put it in reverse. I wrote a little piece about that docking technique here.
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