permalink change

I am trying to change my permalinks, but for some reason all my custom options is showing /blog as a default, instead of using the root as the default. This means every post has /blog/ in the URL but since this is a store site, I don’t want blog in the URL. Any way I can change this?

If you can see it, here’s a look at how my permalink options show up in admin: http://screencast.com/t/9FdvGJPGwH9a