I'm a little concerned that the torp mod might be effecting non wire-guided torps.
Yesterday, I was playing in the FFG with LW/Ami 3.0B and the torp mod over it; I was firing SVTT torps set to search at 800 feet, and they were doing their search patterns on the surface.
I also had a Mk54 travel 10nm to hit a Victor, but I think this is game-engine related.