The option on the screenshot is used to exclude categories, tags and other taxonomy term based results.
I guess you want to exclude posts by ID, then you are looking for the one on the Advanced Options -> Exclude results panel (almost on the bottom): http://i.imgur.com/sBZiyVQ.png
So there is no way to exclude posts and pages as a whole from a search?
If I am understanding you correctly, my user would have to go in and add a post id to the exclusion list every time a new blog post is written that is not in the custom post type that the search is for?
Do you understand how impractical and painful that would be if that is the case?