Bound Area...Boundary was not found

I believe I am missing something obvious here.  When using Draw>Bound Area (Region)  on a simple rectangle shaped part I can only get one side to convert to a region.  Every other area I try this on I get a "Boundary was not found" error.  I've tried everything that I can think of.  Anyone have any pointers for me?

 

Using polylines, closed or not closed I get the same results...