AutoCAD 2010 :: Hatch Command Reveals Xclip That Isn't In Drawing

I'm trying to hatch floor patterns in suits. I draw a pline aroudn perimeter. There are a couple of problems. 

First, when I do a hatch by selecting the pline ("object"), it doesn't detect islands, such as our room tag. This is likely because the hatch is over an xref (the suite is an xref, room tag and pline are not), and hatches don't seem to like xrefs. 

Next option is to hatch by "pick points". When I do that, and select a point on the floor of the suite, all of a sudden an old xref or xclip appears in 2 locations, and the hatch boundary takes the lines from that new xref into consideration. The crazy thing is that this xref does not exist in any form in the drawing. I have purged/audited the drawing, and the drawing no longer even exists in our computer.