I assume that you already have all the files in the correct folders only the names are not quite as they should be.
In this case ...
Create a new action
Type: Format tag field
Field: _directory (select from the dropdown list)
Format string: %album%
This does not yet consider the CD1, CD2 case.
This action renames the folder according to the name of the first file found in that folder. All other files in that folder get moved as well, even if they belong to other albums).
If you still have to distribute the files across the filesystem then use the converter TAG-FILENAME and a mask like this:
%album%\%title%