Featuremanager Design Tree icon-part not building correctly

Hi

I am building a flat panel on top of an existing part (think a saucer on top of a cup, with the saucer having a hole in the middle to match the cup). I have used 'convert entities' to match the shape of the existing part, then sketch a larger square around it. For some reason when it extrudes it is filling in the hole in the middle.

There is an icon in the Featuremanager Design Tree beside the sketch; it is a box with a swoopy top and a circle in the middle of it. I'm not sure what that means (although it looks kind of like what I'm trying to create) but thought it might give a clue as to why the part is not extruding as I intend.

Anyone know what I'm doing wrong?

Thanks very much.

Garnet

SolidworksParts And Features