Yeah... You're in the complete wrong place. That dialog in options is where you set it for
NEW rips from CD. So, you
do want to set it like that there, so that when you rip new files, they'll end up named properly.
However, to change what you already have, you need to USE the Rename Files from Properties tool. You can use this to change a file or files to whatever you want. Separating the Rename Files from Properties tool from the Options dialog allows a lot more flexibility if you want different naming conventions for different types of files. So, for example...
I have my audio files "named": M:\music\<Artist>\<Album>\<Track #> - <Name>
But my TV Shows are: M:\video\<Genre>\<Artist>\<Album>\<Artist> - <Name>
And my Movies are: M:\video\<Genre>\<Name> - (IF EXISTS <Artist>)
If all you could do was specify one naming convention for audio and one location for video, this wouldn't work for me at all.
So... To change the files you already have. First select them. I would actually strongly suggest you "practice" on a handful before you do them all.
Then,
right-click --> Library Tools --> Rename Files from Properties and make it look like this: