We will be trying this out next week at DieCon, and I thought I'd share with all of you for any suggestions or feedback you might have.
This system replaces the "Damage Checks" process outlined on page 14 of the GF3 rulebook. One modification must be made to the ship data cards: for each section of hull boxes, divide the number of boxes in half and round up. Count this many boxes in from the front of the section, and place a dot inside that box. Also place a dot in the last box of each of the first two sections, for a total of five dots. For example, the British battleship Iron Duke will have dots in the fourth box of each section (7 ÷ 2 = 3.5, rounded to 4), and in the seventh box of each of the first two sections.
Whenever a box with a dot is checked off, roll three dice and compare the result of each die to the following chart:
1-4: Gun Damage. Check off the first unchecked attack dice box in the corresponding gun battery: a "1" means the first gun battery; "2" means the second gun battery; "3" means the third; "4" means the fourth. If the ship does not have an associated battery, ignore this result.
5: Engine Damage. Check off the first unchecked speed box.
6: Critical Hit. Reroll the die; on an odd result, the ship suffers a critical hit.
Damage to torpedoes is handled as before.
EXAMPLE: HMS Iron Duke has taken her fourth point of damage, and a damage check results. Three dice are rolled, coming up 1, 4, and 5. The "1" means an attack dice box is checked off of her first gun battery (13.5"/45 Mk.V); however, as she only has two gun batteries, the "4" is ignored. Finally, the "5" checks off one speed box, reducing her speed from 4+ to 3.