As you've noticed, the pop-ups display the index of the field in question and do not respect field formatting: you have to change the data itself to change the appearance of the pop-up list.
Fortunately, FM7 gives us some cool ways to do this. One method is to use an Auto-Enter calculation that formats the text for you. Something like: Proper(MyField).
Be sure to *uncheck* "Do Not Replace Existing Value of Field (if any)". This will reformat the text in each field as soon as it is entered. Once this is in place you can fix legacy records by running a Replace command (put your cursor in the field in question and select Records / Replace Field Contents) on your found set, replacing each entry with itself (use a calculation that is nothing but the field itself). This will force the auto-enter calculation to fire, reformatting each record.
While you're at it, you can remove things like Bold, Underline, and Colors at the same time using something like: TextColor ( TextStyleRemove ( Proper ( text ) ; AllStyles ) ; RGB ( 0 ; 0 ; 0 ) )
(For a more interesting version of Proper() , check out this
function.)
Hope that helps,
John