1. Who is the dog being wagged? Who is the target of the political and media manipulation by Conrad, Winnie and Stanley?

The target of the manipulation are the american electors. They want to distract the voters from the president’s sex scandal to save his re-election. So they are the dog being wagged are the voters because when the tail is wagging the dog, he’s manipulating  the dog.

2. “Change the story, change the lead.”

That statement of Brean means that he has to create a story which distract the people from the sex scandal. He has to find a story which is more interesting then the sex scandal of the president. Thus the people have a new lead and talk about the new story. In this case Brean uses an Albanian war as the new story to talk about.