This part of the wizard is only seen when you process a file for recompile compatibility.
On this screen you will almost always want to extract SHG files complete with the hotspot data, since this is important for insuring a fully recompilable project.
However, you may want to have the source images available for editing or examination, and you may not want to use SHED.EXE or your hypergraphics editor to extract the images from the SHGs. In this case, you can perform two conversions, one to produce SHG files and the other to produce BMPs and WMFs, so that you have fully editable source images from the project in addition to the original hotspot data
Debunking a myth about decompiled SHGs
You may have heard that decompiled SHGs include different types of hotspot data from the decompiled RTF source. When using a high-quality decompiler such as Help to RTF this incompatibility simply will not occur.
You may have noticed differences between SHG context strings and the corresponding context strings in decompiled RTF source when using other decompilers. Help to RTF won't produce this type of inconsistency, since any SHG hotspots which have corresponding context strings in the RTF source document will be matched and reproduced accurately when Help to RTF processes the compiled file.