Most of this week (aside from work) was spent trying to figure out a bug with the position tracking.

When you rotated more than about 180deg, the ship would flip around on the remote client and show a completely wrong direction.
Turns out, in MLAPI, trying to send a RPC with a Quaternion results in this issue. I had to send the values individually.

Firing now damages other (remote player) ships, and the shield animation is played for all players. Ships can be destroyed.

Respawn doesnt quite work yet, thats the next thing on the list.