I realize this is a thread resurrection, however I was searching for topics on the S-Gerät and only found this thread here.
I just tried it out in a patrol myself, and gotta say I'm totally floored. It works exactly as MothBalls described it above, EXCEPT that you have to hit the button multiple times (10+ times) in quick succession in order to get an acurate range, because the first few readings will most probably be bollocks. When the ranges increase or decrease only slowly and not by several hundred meters anymore (depending on aspect and speed of target of course) with each ping, you know you got accurate readings.
This device is totally ubber for sure. I've just sunk two lone merchants with it in zero visibility (15 m/s winds, heavy fog and heavy prec.), I never even saw them and neither had to. I just took two S-Gerät readings 6 minutes apart, thus got target course and speed, took a third one to be safe, varied a bit but only slightly, set myself up in a firing position, selected firing bearing, entered the according range, speed and AOB of this point into the TDC and once sonar reported target on pre-planned firing bearing, let lose my torps and hit the target at some 1.5 km out. I was tracking the torps on the sonar and they pretty much hit midships. Well the first engagement, because I wasn't quite sure about the accuracy, I fired a medium 4x spread, but it was a complete waste since 3 of them hit the target dead on and I suspect the 4th one only missed cause the target was already obliterated, slowing down, or simply too short (read in the logbook it was a small merchant). This is working so well it should be possible to get accurate hits on a steady target at max torpedo ranges.

Only downside might be DDs will hear you pinging the crap out of the convoy, but this again would probably much depend on their AI level, the range, and of course which mod is used, if at all.
Either way, this device seems to work much better than its historical counterpart and might thus be seen as a bit of a cheat actually. From what I've read it wasn't very reliable nor working very well and they scrapped it. In the game however, it is actually working as well as the later Nibelungengerät might have iRL, which was devised for the Type XXI iirc.