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Just sink merchants, and do it inside the area marked in red on the map. You don't have to 'Patrol' the specified areas like the markers indicate, or do anything fancy. The progress bar filled up, and I completed the mission in about 30-40 minutes. All I did was drive up to some enemy ports within the area marked by red on the map, sink some stationary Merchant Ships, 'Refit' at a friendly port when I ran out of torpedoes, went back and did it again. I didn't save the game, exit, and pick up later. I started over (again), making sure to do it all in one patrol and in one sitting. Play the mission from beginning to end, and only return to a friendly port in order to 'Refit'. *** Don't return to your home port and 'End Patrol' in the middle of the mission. Well.After many weeks of playing this game and trying to figure out what I was doing wrong, I finally figured out what the problem is: Again, I sank about 500,000 tons, and the progress bar stayed at 40% and never budged. This time, I sank some Merchant Ships and the progress bar moved! It got to about 40% filled, then all of a sudden stopped moving when I picked up from my last save the very next day. I finally had enough (the mission due date was pretty much up anyways), and decided to make a new campaign and start over. I'd patrol right by the markers, I'd sink Merchant Ships off the coast, in the middle of the ocean, by the enemy ports, everything. No progress was accumulating on the British Coastal Waters mission at all, and I sank over 600,000 tons within the range. I started my first campaign and had the same exact problem. even after you've sunk Merchant Ship, after Merchant Ship, after Merchant Ship. You can't figure out why the progress bar doesn't move an inch. If you're like me, then you've probably been playing the first mission (British Coastal Waters) for quite some time, and you're frustrated to wits end. Not 100% sure on that I'll have to try it and see what happens.
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You might also have issues completing the mission if you save the game and exit the program while in the middle of it. Sink Merchant Ships within the area marked by red, and just 'Refit' at a friendly port when you run out of torpedoes. Request the British Coastal Waters mission, and don't 'End Patrol' in the middle of the mission. Start completely over with a new campaign.