[R] assign point values as labels in spplot

[emorway]

In the code to follow, I'm trying to label points with their corresponding
values but have been unsuccessful after many variations to the following
code.  The code below creates the plot I want, I simply cannot get the black
points ("+") to display the actual value.  I'm guessing the problem is
somewhere in the second to last line of code (starts with "pts<-...").  I
have attached the two text files needed to run the code.  
http://www.nabble.com/file/p21734824/R_Hk_Krig_File_Log.txt
R_Hk_Krig_File_Log.txt 
http://www.nabble.com/file/p21734824/Predict_Location_XY.txt
Predict_Location_XY.txt 
Eric

library(gstat)

K.dat<-read.table("C:/temp/R_Hk_Krig_File_Log.txt", header = TRUE)
my.dat<-data.frame(K.dat)
attach(my.dat)
coordinates(my.dat)=~X+Y

pred.dat<-read.table("C:/temp/Predict_Location_XY.txt", header = FALSE)
names(pred.dat)<-c("x","y","p")
my.pred.dat<-data.frame(pred.dat)
coordinates(my.pred.dat)<-~x+y
gridded(my.pred.dat) = TRUE

#Set up 2 exponential variograms
lzm.vgm.exp.noNug<-vgm(1.1,"Exp",2000,0)
lzm.vgm.exp.Nug<-vgm(0.7,"Exp",3000,0.4)

#Krige the exponential variograms
lzm.krig.exp.noNug<-krige(Kh_Log10~1,my.dat,my.pred.dat,model=lzm.vgm.exp.noNug)
lzm.krig.exp.Nug<-krige(Kh_Log10~1,my.dat,my.pred.dat,model=lzm.vgm.exp.Nug)

lzm.krig.exp.noNug$var1.pred<-10^lzm.krig.exp.noNug$var1.pred
lzm.krig.exp.Nug$var1.pred<-10^lzm.krig.exp.Nug$var1.pred

library(sp)
library(lattice)
pts<-list("sp.points",K.dat,pch=3,col="black",labels=as.character(K.dat$Kh))
spplot(lzm.krig.exp.Nug["var1.pred"], scales=list(draw=TRUE), 
	xlab="Easting",ylab="Northing",cuts=25,key.space="right",cex=1.1,
	col.regions=terrain.colors(25),main="Hydraulic Conductivity of Layer 2",
	sp.layout=list(pts))

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