I'm still trying to grasp the basics here.

Ok.

I have 2 circular curves (closed), one on top of another.
When I select both and loft, the lofted surface isn't circular but more like a multi-sided polygon.

I've tried all the settings in the loft option box but can't seem to get the cicular loft.

Any ideas?

Here's the screenshot of my problem. As seen, the loft is not circular (like the curve) but flat surfaces.