Ok here are some screens from your TDW Torp tutorial mission:
Two smoke comparison shots, one from a few thousand yards, one closer:
http://cloud.steampowered.com/ugc/55...30906A23171F2/
http://cloud.steampowered.com/ugc/55...AC162FEBFDBD9/
Target attack, 3 of 3 torps, second split her in two, starts just after second impact with multiple viewpoints and ends at effect fade:
1:
http://cloud.steampowered.com/ugc/55...C3B367551BAED/
2:
http://cloud.steampowered.com/ugc/55...88428AE48C15F/
3:
http://cloud.steampowered.com/ugc/55...D3D1D4B626569/
4:
http://cloud.steampowered.com/ugc/55...2DC21E1AA0BF9/
5:
http://cloud.steampowered.com/ugc/55...6B3C3FC007FC1/
TC32 a few mins to the actual sinking of the boat:
1:
http://cloud.steampowered.com/ugc/55...9694E964286A8/
2:
http://cloud.steampowered.com/ugc/55...4DE1C03F7841E/
3:
http://cloud.steampowered.com/ugc/55...6B3C841365268/
The ship skin you see in the attack shots doesn't show up in the smoke comparison shots, and I quite often get quite severe LOD-like pops like that, right up to ships that are black from range and only become textured at all close up. No oil or anything resembling it in the shots, just that white wash effect the whole way through. Weird huh?
EDIT: And oil_spot_1.dds is definitely there as expected. Can't imagine anything modifying it. Umm...?
