Dave,
You should be able to see a change in Dmax. Keep an untoned wet print handy for comparison. There's no way to just use dilution and time with selenium toner accurately unless you plan on discarding the toner well before its exhaustion point has been reached; both uneconomical and environmentally irresponsible IMHO.
You could devise a test for replenishment by using exposed strips and comparing tone change; too little change in a given time, replenish a bit, too much, dilute a bit... But, I say again, visual evaluation of the print is going to be your best bet, regardless of your level of experience.
Ned,
The precipitate, I believe, is caused by selenium plating out on silver thiosulfate compounds that are dissolved in the toner. This can happen long after the last toning session. The precipitate can be easily filtered out using coffee filters, etc.
mr rusty,
I have not been able to determine and real difference in a print toned for a shorter time in very strong toner and a print toned in a weaker dilution for a longer time. The tone change just takes longer to achieve in the latter case, giving more control and avoiding uneven toning... Try toning a print in strong toner and then the same print in weaker toner until it matches the first one and see if you can see a difference. I couldn't.
Best,
Doremus