[quote user="FernandoM"]Can you give us an example of the type of overlaps you have. Thanks [/quote] the original poster put a picture and its exactly the case I described the solution for where the 4 lines cross over and over hang just like the hash key ( shift 3) on your keyboard. but as along as there is only one possible inner boundary then the flood create region will make a closed shape by tracing only the lines that form the inner boundary .. it can also make torus or toroids by turn on lower hidden menu ( little black triangle) click on locate inner shapes will make doughnuts or toroids or islands in GIS speak....
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