I've been having the same problems with the new LazyCAM 3. It solves a lot of problems in earlier versions (LazyCAM 2.02). LazyCAM 2.02 would do things like create an offset around the object being pocketed, and offset inside vs. outside was always confused. However, I do a lot of pocketing and I can fix those problems by just deleting what isn't right or by trying "offset inside" if "offset outside" doesn't give me what I want. What I can't fix is the type of problem you show above caused in LazyCAM 3.0. What I'd recommend is reverting back to using LazyCAM 2.02. It has been a real workhorse in my workshop. I can generally cut what I need to with that version. Somehow the bugs solved in LazyCAM 2.02 crept back into LazyCAM 3 for the time being. Those bugs are hard to kill, but Art and Brian are working on this all the time. I can't wait to try a new version of LazyCAM 3.