What will this do? Does it move and organize all the music, if so, does it do all audio files in the PC or just what's in the library?

Also, when I first started using iTunes I had it import CD in to AAC and now I'm wishing they were in mp3, is there an easy way to convert them, or should I just re-rip them in to mp3?

This is on a PC with xp home sp2.