There are 2 lead / aim reticles, one yellow, one white. They correspond to kinetics / blasters. The projectiles travel at slightly different speeds, that’s why they are separated.
It’s where you need to fire at in order to hit the moving target. Distance is of course important; the closer the target, the higher the chance of hitting. Projectiles on the Interceptor typically travel at around 1.5 Km/s so you’ll have to be within a 1 Km range to maximize your chance of hitting.
The Target’s hull and shield status appear on the left of the indicator:
It’s important to understand that blasters will destroy the shields but do no kinetic / hull damage, so even if you fire forever with them, you’ll never take the target down. Shields also recharge pretty quickly on interceptors, so if you do not do enough damage over some period of time, your shield damage will be negated and you’ll be back to square one.
Hull damage is permanent ( at least until you get repaired in a hangar or by a corvette ).
The thing which is confusing me, to be honest, is that you seem to complain that the game is too difficult ( you say your shots were connecting but you still could not kill your target ). But at the same time you’re asking to make the game even more difficult, by removing the lead target indicators and increasing shield points ? That’s kind of contradictory, so I assume there’s something I’m missing or haven’t understood correctly.