Hiya,
I found this for you on the German (London) consulate website:
Main features of the new legislation
Acquisition of German citizenship by the fact of being born in Germany
Children who are born in Germany to foreign nationals will receive German citizenship when one of the respective child's parents has resided lawfully in Germany for at least eight years and holds entitlement to residence or has had an unlimited residence permit for at least three years. Under the new law, such children acquire German citizenship at birth. In most cases, they will also acquire their parents' citizenship under the principle of descent (depending upon the other country's laws). For this reason, such children will have to decide within five years of turning 18 – in other words, before their 23rd birthday – whether they want to retain their German citizenship or their other citizenship. They must opt for one of their two nationalities (which is why this is called the requirement to opt):
* In the event that they declare that they want to retain their foreign citizenship, they lose their German citizenship. This is also the case when such a child does not make any statement to the authorities before his 23rd birthday.
* Should the respective individual decide to keep his German citizenship, he has to provide proof before his 23rd birthday that he has lost his other citizenship. Exceptions are possible, particularly when renouncement of the other citizenship is not possible or would be unreasonable
So, it sounds like you can't be dual. However, I know someone who has dual US-German citizenship, as his mother is German, father American. Apparently the laws are different for descent.
You'd also have to find out if your father being stationed there qualifies as 'lawfully resided for at least 8 years', how long was he stationed there? And I'm not sure if they expect the foreign national parent to have to still be residing in Germany at the time you make your application.
As far as UK visas, you may be able to get a work visa through the Navy if you are stationed at a naval base in the UK, in which case this could potentially lead to settlement. But I'm not certain of this....
Also, I wonder whether the Navy would pay for you to study at a University in the UK? I know that FAFSA loans can be used toward several major UK universities, if that's any indication of how far the US government is willing to extend its hand... This would mean a student visa...
Whatever you do, keep your positive attitude, and good luck with everything.
Diana