Thanks guys!
Figured out some additional things with small boats.
Would highly recommend running your game with SH3 Commander.
In the SH3 Commander config where the time is set to x4 if you get near land, push this up really high.
The reason is that when you are assigned to Kiel, going through the canal saves a heck of a lot of time. With the time adjusted above you won't be going through the canal at x4 large parts of the time because you are near land. Just be extra careful with your navigation and not running into things.
The canal was very enjoyable.
Also what I experienced was that by end of the second patrol, I had sunk a few ships with some modest renown. Once I got in port I applied for a transfer to the 2nd Flot and got it with my little type II, so ...problem solved.
Will post a few screen shots in the future. A few lovely shots going under both bridges in the rain.