(Abridged) Weak gravitational lensing induces distortions on the images of background galaxies, and thus provides a direct measure of mass fluctuations in the universe. Since the distortions induced by lensing on the images of background galaxies are only of a few percent, a reliable measurement demands very accurate galaxy shape estimation and a careful treatment of systematic effects. Here, we present a study of a shear measurement method using detailed simulations of artificial images. The images are produced using realisations of a galaxy ensemble drawn from the HST Groth strip. We consider realistic observational effects including atmospheric seeing, PSF anisotropy and pixelisation, incorporated in a manner to reproduce actual observations with the William Herschel Telescope. By applying an artificial shear to the simulated images, we test the shear measurement method proposed by Kaiser, Squires & Broadhurst (1995, KSB). Overall, we find the KSB method to be reliable with several provisos. To guide future weak lensing surveys, we study how seeing size, exposure time and pixelisation affect the sensitivity to shear. In addition, we study the impact of overlapping isophotes of neighboring galaxies, and find that this effect can produce spurious lensing signals on small scales. We discuss the prospects of using the KSB method for future, more sensitive, surveys. Numerical simulations of this kind are a required component of present and future analyses of weak lensing surveys.