I can confirm what maccauk is saying.
We have a very successful GG4DM server and we wanted to test GG% out before we switched, so its on a separate test server.
We were playing last night and people on the nade/knife level were not losing a level if they got knifed!
In one instance, a person on nade got knifed and gained a level up to the knife level.
Windows server
ES 2.0.0.250
GG5 5.0.569
GG Utils 0.0.2
Knife Pro
DM
Turbo
NoBlock