you need to clean up the data. your big boundary is duplicated and all the small boundaries are not closed. pedit, multiple, select and close, ecit. Then make sure you have one of each unless you want duplicates.
The cleaning up process worked as far as making a shape file for the Hatch boundray. I guess there is no way to bring in the solid fill of a hatch as a shape file?
Again Thanks for everybody's help!
You need to understand how GIS features work. There are only points/polygons/ and polylines(line) type object generally with out a lot of addons. In ArcGIS you would need to set a solid style to the polygon you exported from CAD to get the hatch looks.