  In this paper we present high-resolution hydrodynamical models of warm
ionized clouds embedded in a superwind, and compare the OVI and soft X-ray
properties to the existing observational data. These models include thermal
conduction, which we show plays an important role in shaping both the dynamics
and radiative properties of the resulting wind/cloud interaction. Heat
conduction stabilizes the cloud by inhibiting the growth of K-H and R-T
instabilities, and also generates a shock wave at the cloud's surface that
compresses the cloud. This dynamical behaviour influences the observable
properties. We find that while OVI emission and absorption always arises in
cloud material at the periphery of the cloud, most of the soft X-ray arises in
the region between the wind bow shock and the cloud surface, and probes either
wind or cloud material depending on the strength of conduction and the relative
abundances of the wind with respect to the cloud. In general only a small
fraction (<1%) of the wind mechanical energy intersecting a cloud is radiated
away at UV and X-ray wavelengths, with more wind energy going into accelerating
the cloud. Models with heat conduction at Spitzer-levels are found to produce
observational properties closer to those observed in superwinds than models
with no thermal conduction, in particular in terms of the OVI-to-X-ray
luminosity ratio, but cloud life times are uncomfortably short (<1Myr) compared
to the dynamical ages of real winds. We experimented with reducing the thermal
conductivity and found that even when we reduced conduction by a factor of 25
that the simulations retained the beneficial hydrodynamical stability and low
O{\sc vi}-to-X-ray luminosity ratio found in the Spitzer-level conductive
models, while also having reduced evaporation rates.
