You need to turn on "always convert" then you can set volume leveling.
Thanks, I figured that might be the case.
I stated messing around with the conversion cache options on my work machine.
I went to Tools > Options > Media Network > Client Options > Audio Conversion and turned on Always convert audio and selected MP3 High Bandwidth.
Next I went to Tools > Options > File Location and went to Conversion Cache. I selected MP3 high bandwidth, checked Run conversion in background, and then clicked Build Conversion cache in background now...
Is this all I need? It only converted a smattering of FLAC and Ape files I had laying around. The vast majority of my library (192-320 bit rate mp3s) were left unconverted. Will these files be volume leveled?