I have used the Smart MPE Converter for converting .flac to .mp3, but the artist and album are not included with the conversions, although they are in the files. Is there a setting to include those in the finished file and folder?
No, there is no setting to include the album artwork or ID3 tags. The software will convert the files as they are. Basically, this is just a simple converter to transform the a file format to another while keeping its functionality.
There is a free application called FlacSquisher that has the capability of copying the artwork when the conversion takes place. You can give it a try using the homepage where it can also be downloaded: http://sourceforge.net/projects/flacsquisher/