Issue with converting entities, only part outline shows up

I have a part with multiple holes that I want to convert on anew sketch. I seem to remember a way to convert all edges,including geometry inside of a the outer border. We just upgradedto SolidWorks 2008 about 2 weeks ago, so maybe this is a setting inSystem Options that I cant find.

As a workaround, I am using the selection filter to select alledges, but is there a way to do this by default?

See attached screenshot

SolidworksParts And Features