Ran a battle of the Denmark Straight scenario against my wife the other day (gave her the Brittish.)

We were trying out the rules both for a WWII scenario as well as a hexless approach.

The system worked beautifully.  I just changed each hex of range to 3". . . but I left the movement rates the same, to slow down the ships so they weren't racing across the table.  Worked out well using 1/2400 ships on a 6x4 table.

The Brittish won. . . but without a lucky hit taking out the Hood, and creating some scenario rules to reflectr PoW's gun battery problems, that was pretty much a foregone conclusion.

One thing I would suggest though for fires:

On a roll of 1 on the fire results table, I'd suggest leaving it at 2 additional hull points of damage, but causing another roll on the critical table.  This means that fires left burning unchecked can potentially spread, causing more fires, destroy other critical systems, or even reach the magazines.  Adds a little more of the fear factor to unchecked fires raging on a ship.