Parts in Solidworks not surfaced correctly

Hello,

My company finally approved the use of solidworks and purchased a license on silid works premium 2011. Now it has been a while since i have used the program but i dont remember ever having this problem. When creating a part the surfaces are not shaded evenly.

this is a simple cylinder, but the top surface is not rendering correctly. The problem complicated the image when any modifications are made; this is the same cylider with a hole "extruded cut" the length of the cylinder:

i could really use some help if anyone has experienced this problem before or has any sugestions on possible fixes i would greatly appreciate it.

Thanks

SolidworksGeneral