The Torpedo Damage Final only affects the graphics for the damage done at point of impact when you hit a ship (holes blown in the hull, etc.) so it doesn't conflict with Enhanced Damaged Effects (which has to do with the kinds of fireworks and whatnot that happen as a result of the damage you did).
You can find the Torpedo Damage Final mod(s) at Jimbuna's FileFront page, there's a link to it in the sig at the bottom of his posts. I think there are two versions, but they're small so you can try out both and see which one you like.
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