Imported feature has a volume of 0.00

I'm attempting to take an igs file and build a mold around it in Creo 1.0, but when I use the cutout tool it doesn't actually remove any material to the other part in the assembly. I can see the outline of the first part outlined afterwards and the software says "Cut out has been created successfully." But when I do a volume check the second part hasn't lost material - and if I cut away part of that piece the cutout doesn't go with it. I've attached the IGS file and my assembly, and the screenshot is of the mold part with all features highlighted.