I am using manual targeting Steve.
I think my original post wasn't written that well and has mislead you. (I wrote it after an all night patrol.) My bad.
I now use One life Crisis's New Gui and Jagd tools. An excellent mod. I think it was designed for those who
do use manual targeting. Until I used this mod I struggled to hit salt water manually. This set of tools and new layout brings it all together for me.
Get OLC's mod here
http://www.subsim.com/radioroom/showthread.php?t=124639