That's the command line option that you would pass to avrdude to tell it to ignore the signature mismatch. An m328p (device name to avrdude for atmega328p) has a signature of 1E 95 0F so you seem to be telling it that you have an m328, but you really have an m328p.
I have no idea how to override the command line arguments passed to avrdude by the arduino software.
I figured out the problem. It was true as you said, I chose a guide on how to burn a bootloader to an m328 chip, not m328p. I just simply chose "Ardunio UNO" as the board and it worked out okay. I was too hung up on that error message telling me that the TQFP and the DIP had different signatures, but that wasn't the case at all 
One last question though. The TQFP has more pins than the DIP, how will the arduino deal with that? Can I simply write "analogRead(7);"?