As far as the torpedoes being more reliable you can turn off dud torpedoes in the change realism menu prior to starting a mission. Increasing the strength of the torpedo is beyond my expertise at this time. I have had more luck sinking torpedoes with one shot using manual targeting. There is a ship recognition chart that shows vulnerable area of ships to target. When I find it I will post the link for you.
I have shot at S boats on the surface but not submerged. Missed both times.
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