I've reinstalled the game and verified integrity of the files. Then copied StarboxDef.xml file from steam's Data/Game folder and pasted it here: \Documents\My games\GC3Crusade\Mods\NoNebula\Game. In the DefaultStarbox section I made the highlighted changes:
<NumRandomNebula>1</NumRandomNebula>
<NebulaMaxMinRatio>1.0</NebulaMaxMinRatio>
<NebulaFillRatio>8.0</NebulaFillRatio>
<MinNebulaOpacity>.10</MinNebulaOpacity>
<MaxNebulaOpacity>.10</MaxNebulaOpacity>
<RandomNebulaTexture>Temp/Gfx/Space/invasion03.dds</RandomNebulaTexture>
<RandomNebulaTexture>Temp/Gfx/Space/invasion03.dds</RandomNebulaTexture>
<RandomNebulaTexture>Temp/Gfx/Space/invasion03.dds</RandomNebulaTexture>
Double checked that mods are enabled. Then tried starting a new game, quick start and loading a saved game. Still no changes to the background nebula. I don't know what I could be missing.