If you hit, you roll one die for location. Check off the boxes on your sheet. You have three areas, hull, turret, and control. If you lose all turrets, you can only torpedo attack. If you lose your hull, you sink.
Movement is area, only one area at a time, or out of port.
The only port the UK can enter is Stanley, the Germans can not enter a port. I agree with Doug M's posting that the game is hard for the German to win, but it is fun to play. Falklands 1982 uses the same map.