Ahh, now I understand.
Well as you can see in my example above, both the target and I are roughly travelling in the same direction. When I view the target, his angle on the bow is about 77°. Over the 3.15 minutes run, we got closer to each other. At the start of the run, he was 9700m away, at the end he was 6500m. His relative movement seems to be heading toward me at 3.5kn. This relative movement circle is then dragged to the tip of my heading and speed of 13kn. I then use the ruler tool and draw a line from my position (center of big circle) to the tip of his relative heading/speed and viola, it measures @271° and 11.5 kn., which is his TRUE heading and speed.
This might help as well:
http://www2.ku.edu/~kunrotc/academic...t#300,1,Lesson 23: Maneuvering Board Fundamentals
Try to get a copy of Pub 217 Maneuvering Board Manual. (I believe it can be DL for free as well)
I hope that helped.