You may be able to use Window: Pathfinder: Minus Front. This will not work on an image though.
For an image you need to make the compound shape. Then click on the compound shape and the image. Object: Clipping Mask: Make
That just graphics you can do it too?
I am trying to do it w/ an Image though....its a pictice I maked the outter diameter but I need to cut out the center of it too...Is it possible???
yes like the earlier guys said......lets say you have a picture and you want to make the outer edge masked to a circle and you also want to make a portion in the center be knocked out. Take the outer circle where you want it and make the inner circle where you want that one. Select both of the circle and make it a compound path. Then put your compound path on top of your image and select both of them and make it a clipping mask. It acts screwy sometimes so try it a couple times and it should eventually work!