Good to go!
It appears that the issue I was running into was some type of bug in the game.
The strange thing is that I ran into the situation where I couldn't restart my U-boat 5 games straight. I played the game yesterday and except for once my boat started every time. The one time that it didn't start yesterday I inadvertantly hit the dive button and that seemed to free things up after I resurfaced, because my U-boat picked up it's course.
Today I was able to duplicate the problem I had earlier. I did drag every possible crew member into the Diesel Room and nothing happened. (That did bring the room to 2/3 of the green bar).
As suggested I backed my sub up, and hit the forward engine and it worked fine. It appears that there is a bug causing the issue, but it is pretty easy to work around.
Thank you everyone for your help!
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