OK, I uploaded the correct wheel set up. The main problem is that this wiz-wheel is absolutely counter-intuitive in its use
The red line for periscope bearing is fixed, while in fact it is the bearing wheel (outer blue one) which should be fixed!! The periscope moves, the bow doesn't. Or, alternatively, you could make the compass wheel (yellow) fixed because the true North will never move, and leave all other wheels free rotable (including the periscope bearing red marker). Actually, this last option would probably be the best for the game, as in the chart (Be it the map or attack chart) the true north is always at the top.
As it is now, the most easy way to set the wheel up is as follows (Setting up the dials from outside to inside):
1) Rotate the blue dial until the red line marks the current bearing to target (305º in my example)
2) Rotate the yellow dial until the true course of your submarine (due north in my example, zero degrees) matches the blue arrow in the outer blue dial
3) Rotate the innermost dial -target dial- until the target course (blue arrow in the target dial) matches the target's true course in the yellow dial (90º)
Alternative to 3): If you don't know yet the target's true course but instead have estimated his angle on the bow, rotate the innermost dial until the target AOB matches the red line of the scope bearing.
EDIT:
I just wanted to add, that the main problem is that one of the wheels needs to be inverted to what one would naturally think for the whole system to work. The author of this wheel chose to invert the compasswheel, instead of the submarine bearing wheel as is customary in all wheels I have seen, and hence the confusion. I'd strongly recommend to re-arrange the wheel for inverted submarine bearings, as otherwise everyone who learns to use this wheel will have later difficulties using other (real) wheels.