Here are some screen shots of an early prototype.
Features - targets colour coded by type and hostility status
Info block displayed (like the normal Targeting Enhancement) for currently selected target
Fighter jet style deadly diamond of death target highlighter on currently selected target to make it easy to spot amongst the mass of potentials
http://www.alioth.net/tmp/loot.png - It makes it MUCH easier for you to spot your loot.
http://www.alioth.net/tmp/targetrich.png - A target rich environment
http://www.alioth.net/tmp/thargs.png - A Thargoid encounter
Yes, some of the colours need fixing

Other features I want to do - a *brief* info block (maybe just small icons) on non-selected targets, and a target 'pipper' to help you line up your laser (this is trivial).
Code-wise, currently I'm just putting this over the normal Scanner Targeting Enhancement since I've done nothing to actually make it into a piece of equipment. If you're interested in running it, the change is under the 'FancyTargetter' branch in SVN.