Decrypt iPod Music Files
These files are not, in fact, encrypted. The id3 tags are still intact. If you re-add the files to iTunes, the proper names and artists should show up, assuming they were tagged correctly in the first place. 

If you have "copy files to iTunes media folder when adding to library" and "Keep iTunes Media Folder Organized" checked in advanced preferences, it should rename the files and put them in folders by artist in your music folder when you add the files to iTunes.