I'd have to see the book and what they are trying to teach but from what I am seeing they are teaching you to make a really messy model lol. I see some really horrific topology and as most on this site know I am a big advocate of using booleans.

From what I am looking at it is examples like this that give booleans their bad reputation.

Here are some of things I see in that image that concern me. First, the boolean cuts through a number of edges that could have easily been moved prior to the boolean operation which is creating some very bad geometry. Second the number of sides in the boolean cylinder used to create the hole are way to high if the model is intended to be smoothed (after a great deal of cleanup). The geo in general is very irregular with poor edge flow.

I am going to the bookstore this afternoon and they have a selection of autodesk Maya books and if I can find your book I will see what they are trying to do and post some tips.

The artifacts look to me to be caused by normal issues. To check select the entire object and harden all the normals mesh>normals>harden. Also, turn off two-sided lighting to make sure the inner faces of the boolean'd cylinder are not flipped.

Once I can determine what the book is trying to teach I will post up a short video to show the proper way to do what I think you are trying to do.

-Rick