No, the option that you executed means that if the row is smaller than 1000 bytes, then it will be in-row. Else it will be out-of-row.
And, remember that text in row only applies to text, ntext and image. Also, the command (sp_tableoption) doesn't move any data, to do the reorganization of the physical data, you would have to do a rebuild.
Also, large value types out f rows only affect the new lob types, i.e., varchar(max), nvarchar(max), varbinary(max), xml, geography and geometry. It has no effect on other types. And, again the commend it self doesn't move any data, a rebuild has to be done.