I did a complete reinstall of SH4 and the Uboat expansion about two weeks ago. It went rather smoothly and have had no problems with Win 7 for this game (don't get me started on other games though)
Now I have never used the keyboard function to raise the periscope. I always use the mouse. So I may have your problem but just don't know it. Have you tried to use the mouse to raise the periscope to see if that works?
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abusus non tollit usum - A right should NOT be withheld from people on the basis that some tend to abuse that right.
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