Silent Hunter III is the best naval sim I've ever played and easily one of the best sims in recent years. SHIII has phenomenal graphics, gameplay and depth in addition to four different u-boat types to command, crew management & training, numerous u-boat upgrades and the coolness factor of being able to physically move around inside the submarine amongst your 3d animated crewmen (ok, you're limited to a few compartments and the conning tower but hey... every gauge rendered in 3D actually works!). A stellar dynamic campaign rounds out the list and keeps you coming back for more. Last but not least the user mods for SHIII are both impressive and numerous.
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