Yes, you have to get things into the Convert area and then drag it in or hit the "Add" button and go find it. At the very bottom is the Options button where you can select the encoding/device to use and where to save it, and you can choose to Save it to iTunes directly. It's not as convenient as the Export and took me quite a while to figure that out. What was really annoying was that I had first brought the files into the normal area, edited them to remove the various segments I didn't want, and then when I went to "Convert" things didn't come over and I had to do it all over again.
I hope this helps.