Toyota Repair: Adjust parking brake, rear disc brakes, star wheel

Question
No it does not have rear disc brakes.  They are drum brakes.  I removed the drum and rotated the star wheel to the point that wheel still turns freely.  Now one click on the parking brake I feel that the brakes are engaging.   Is that to tight or is that good?   Car failed an inspection and the mechanic said the parking brake had to hold the car while in gear and gas petal is depressed. I do not agree with that. The brake is still not tight enough to do that but I am afraid to adjust it tighter.

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Followup To
Question -
How do I adjust the parking brake on a 2003 Camry with drums?  Brake handle is at the end of the stroke before the brakes are fully engaged.  It has about 60,000 miles on it and rear pads have never been changed.
Answer -
It has rear disc brakes with small parking brake drums is this correct?
If so, the parking brake can be adjusted with the wheel off, there is a small hole in the e-brake drum, rotate it until the hole is near the bottom, you will need a flashlight to look inside the small hole(there may be a rubber plug that will have to be removed) there is an adjustment wheel inside, with a screwdriver move the wheel in an upward direction until the drum can't be rotated anymore and then back off about 4 clicks or so until the drum can be moved again, that's it!  

Answer
Only one click to engage the parking brake is too tight it should be at least four, I don't know what the test procedure is in the state you live but it seems that it should hold with the car in gear and the gas pedal not depressed, that makes more sense to me since you could theoretically break it loose at some time by applying more throttle, doesn't sound right to me either.