Ok I'm using this mod and it's a massive difference to the "out of the box" AI.
I stalked a convoy whilst in shallow waters. The DD did come look for me after all sinkings but couldn't find me. I was running at slow speed, not silent and at periscope depth.
So it seems that although they now spend considerable time looking, they can't actually find you still.
I did briefly surface and the DD steamed straight towards the area that it spotted me. I was still able to get away whilst at periscope depth and running at slow speed.
So definatly on the right track but I'm guessing that the sensors need tweaking too.
Good work though - things are really looking up