Rounded corners in 2 axis

[dcroose]

Hi All,
I am trying to make a part with rounded sides and a rounded top by cannot seem to get it done, I have attached the drawing, when I try to view it in 3D I get the error message:
Error: Boundaries of Air outside line must not be less than the light color boundary line.
Please change the line so it will fit within the light color boundary line. Or change the design of the boundary line in the Top view which will update the light color boundary line in the current view."
I have not been able to figure out what this error message means since everything was drawn with "snap to" on. Can some one explain? And how do I correct the error?
Thanks
dcroose

[Tech2]

Remove the Air Outside line in the Right view.
In the top view select the rectangle and choose Line | Machine | Round.

[dcroose]

Hi,
I tried your suggestion and it gives me the rounded top but the rod extending from the top is now not connected. Any suggestions on how to fix it? I have attached the new drawing.

[Tech3]

It's a 3D glitch that will not influence manufacturing of the part.

[dcroose]

Thank you