Where are the Image Settings?

Question

In Adobe's Bridge Reference, it says, "Here are some tips for automating the processing of camera raw image files:
When you record an action, first select Image Settings from the Camera Raw Settings menu [icon appears here] in the Camera Raw dialog box. In this way, the settings particular to each image (from the Camera Raw database or sidecar XMP files) are used to play back the action."
Problem is, I cannot find the Camera Raw Settings menu anywhere in the Camera Raw dialog box, and I cannot find anywhere in the documentation where it tells you how to do what they're recommending here. I'm confused as to whether the action recording takes place in Photoshop (most likely), Bridge, Camera Raw, or the Image Processor. I was under the impression that, of these four, actions can only be created in Photoshop, but now I'm not so sure, since this paragraph says that while the action is being recorded it has to be selected from the Camera Raw dialog box. WHERE DOES ONE FIND "Image Settings" IN THE CAMERA RAW DIALOG BOX?
Edit: Actually, I found the Image Settings selection, but it is still unclear how I can incorporate it into an action. Can I invoke the Camera Raw dialog box while recording an action? if so, how?

Answer 1

Record an Action after opening a file into Photoshop, so the Action contains no Open command but it does contain Save and Close.
Run the Action in a Batch with disabled 'Override Action "Open" Commands' and enabled 'Override Action "Save As" Commands'.