They generally work. It's only problem in this mission. First the terrain is quite complex around the target. Then the target requires a lot of damage and there is little room for error.
I remember having the problem when playing the campaign for the first time, with DW 1.0.
Btw. I'm not sure .. but isn't US fleet around in this mission ? I remember in some mission it was very helpful to promote the target to link, and friendly ships sent their TLAMs too. Or was it different mission ?