Hi happy MoI users :)

I´m trying out MoI for my first time, used it for 3 days now and I really enjoy it.

But now, I need some help, been playing around for hours and cant figure out how to blend these 2 shapes.
How can I get this thing blended without having two edges sitting on top of each other?
Is my setup totally wrong or what?

(I´ve seen tutorials from Samardac and Mike Maynard but still I dont get this..)