The number beside each box merely denotes the sequence in which they are processed. The rest of the boxes are all very similar.
In the “New Name” column you will see what the new name is going to look like, for each and every file you have selected. Then highlight all your filenames (mouse, keyboard, Ctrl+A etc.). For example if you want to replace all underscores (_) in a filename with spaces, all you do is this: In Group 3 simply enter an underscore in the Replace box, and enter a space in the With box. are not exactly very descriptive are they? I use BulkRename (free) which allows you to add and or remove prefixes and postfixes and indeed other info to your selected file names.
Being able to give your files sequential numbers is all very well but file names like document1, document2 etc.