I was finally able to compile the code in MS Visual C++ 2008 Express, after removing bool up, ( which doesn't get used ), changing a couple of 'and' to '&&' and an 'or' to '||' . Also added in '#include <ctime>' for use in the srand function.
Pretty nice program. Placing the ships, worked great, also.
After I was done programming the game (I hadn't actually ever completed a whole game) I had my wife play a couple games for me to test it. She won both times. I though "oh no, the computer must be doing something stupid." Nope. I played against the compute right after her and it beat me. She felt so smart and I felt so dumb lol.