Fillet help (another)

 From:  RHolmes (RICOHOLMES)
7462.1 
Hiya good folks.
I'm not exactly a beginner but I've been hitting a problem a LOT recently with filleting (I know, *sigh*, sorry) and it's just driving me nuts because I'm positive the solution is simple. Being a complete sycophant for MOI3D .. I suspect it's just me.

trying to run a simple circular fillet:






I've studied and studied this model, pulled it apart and rebuilt it etc. a lot. It's not just this model but indicative of pretty much the only consistent problem I run into.