But, as the Black Knight in Monty Python and the Holy Grail said: "'Tis just a flesh wound!"...
The "damage model" in SH4 is such that those "holes" are artwork, drawn into a part of the 3D model, and show based upon damage inflicted nearby, such that sometimes you see a hole, sometimes you don't. Sometimes, it's where you were hit, sometimes not. Drawing "accurate" holes for all contingencies would be very time consuming, as well as probably take up all of the computer's resources. There are usually about 3 holes for torpedoes, sometimes only two, and then several "shell holes", such as what you've got there... As for "shake" upon an impact, you should see some, just not a lot. Camera shake is one of those things that can put the game "over the top" in computer resource useage, and cause a CTD rather quickly, besides having to "customize" it for each boat. Most mods will turn the effect down from what it was originally.
As hauangua mentions, it would be a good idea to post your mod list, where you have the game installed, your basic computer set-up, as well as to whether or not you have the 4 gig "patch" activated on the SH4.exe file correctly.
