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Does it have to be used on the same unit you target with shooting? I have been playing crons since they where satellite guns. Had a guy in my game this weekend tell me nightmare shroud replaced your shooting but wasn't shooting and therefore didn't have any of the shooting restrictions. Did a quick search of the FAQ's and read my rules. Can't really find anything to prove him wrong. I have never used it before so I really don't have any experience with it.

It's not a shooting attack so therefor not limited by the same restrictions.

I did some searches for this, and there is no clear RAW on it but I do have to agree with you Gravmyr that my opponent may have been right.