You can disable espionage by adding the line "DisableEspionage=1" to the [RULES] section of the mission scenario files (e.g. Escape.GC2SCENARIO).
No, its not strictly necessary, but bear in mind it is something that wasn't intended for the balance of the campaign.
As for the conversations, the Korath are not in the DL campaign, so thats nothing to do with the files I sent you.
Looking at the mission file though, it shows Korath as 10 and the Dreadlords as 13. I'm not sure about how that is ordered, but thats Stardocks business not mine...
It will work fine anyway, as it will just use a generic conversation text if it can't find the right one. I just did this to get the "right" text as was intended.