How to format taxonomy terms for URLs

On an Ubercart site, I'm trying to create a catalog using two Views, and I can't get the URLs to be formatted properly in the first view. I'm using a Catalog vocabulary with one level of terms. I'm also using Taxonomy Image to associate an image with the term so it can be displayed in a view. My first view is a Term view, and I'm using a grid display with the Taxonomy: Term Image and Taxonomy: Term fields. I've set the Term field to be output as a link (to /classes/term, and the only replacement patterns available are [name] and [tid]. [tid] returns nothing, and [name] returns the proper case name of the term. In my case, three of the terms are Ceramics, Computer Graphics, and Decorative Arts. So this creates URLs of classes/Ceramics, classes/Computer Graphics, and classes/Decorative Arts, which isn't good. I have another view at classes/% that displays a list (with certain fields) of the classes (nodes) under those terms. With the URLs this way, the only one that works is Ceramics, because it's one word. Now, in my classes/% view, if I set it to display a summary if the Taxonomy:Term is missing, it gives me URLs like classes/computer-graphics and classes/decorative-arts, which is what I want, but it also give me a Page Not Found. If I actually go to classes/Computer Graphics, I get my list of classes, but not if I go to a properly formatted URL of classes/computer-graphics.

So my questions are:

1. how do I get the view to format the URLs in the grid view properly (i.e. classes/computer-graphics and classes/decorative-arts)?
2. How do I format the second view so that it returns a listing for a properly formatted URL?

Thanks.