I'm on Strange Befellows Part 3
now. I don't think I saw the part you are referring to yet?
Damar is getting more awesome as time goes on though. He keeps guzzling Kanar and hating on Weyoun and the Founders. He's about to lose it.
About Dukat...The Pah Wraiths seem to be responsible for most of Dukat's wrongdoings in Season 7 though... if they had never taken over his body in the previous season (I think it was Season 5 or 6) he would have never turned into such