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creating a circle logo

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Hi Damien, 

I am wanting to add some colour to my watermark by creating a coloured circle logo. I have a coloured layer (used from a photo) for the background, my watermark and a text box. I have created an Ellipse shape around it, but can not get it to switch to inverse and for the life of me I cannot find out why! I'll add a photo of it too. Basically I'm wanting the background to be the new circle so I'm left with a circle logo. God I hope that makes sense!!! Eeek

new rectangle colour logo circle.jpg

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