Just found the solution to making podcasts into permanent/normal music entries while clicking around in iTunes 10 today.
I’ve wanted to-do this for a while after listening to some talks I really liked, and would to keep those, but not the bigger podcast they were part of:
First select the tracks you wish to keep, right click, and choose “Create MP3 Version”:
Then wait for them to process, and they appear in you normal music library, tagged and every thing:
Right next to your Red Hot Chile Peppers ;-)