The convert to DNG option is selected, but it's not happening. My images are getting copied from my memory card as CR2 files. Also, I have selected the option to backup my catalog once a week, but I keep getting asked to back it up every time I get out of Lightroom. Is there any way to delete all of my preference settings so I can reset them all?
You can reset Lightroom preferences by holding the shift + option (Mac) or shift+alt (Windows) while launching Lightroom.
In the Import dialog there is no Convert to DNG option. There is a Copy as DNG in the import window. The Convert to DNG is used after they are imported into LR.
I guess you might be running the older 2015.2.1/6.2.1 with the lousy import dialog window. If that is the case please update your LR version to the .3 release.