Both files are there.1. Verify there is a file named /usr/bin/kioclient in your system.
2. Verify there is a file named usr/share/kde4/apps/solid/devices/solid-device-PortableMediaPlayer.desktop in your system.
My settings are exactly the same as yours.1. Right-click on Device Notifier and navigate to Device Notifier Settings > Device Actions and look for "Open with File Manager (MTP connect)".
2. Double-click "Open with File Mangager (MTP connect)" and write down all the existing settings
Completely off topic - Looking at that screen shot, what theme are you using? It looks like it would be easier on my old eyes than the theme I am using.