Photoshop paths (are no longer a compound)

It used to be that I could create a clipping mask by drawing an outline path (using pen tool) plus all the little shapes which are meant to subtract from outer shape and the relationship between the two (outer and inner) was automatic -- in other words, the inner shapes would automatically compound (subtract) from the outer shape. This is no longer the case.
ISSUE:
1) I can copy/paste the mask onto an image in layers palette and, while it does create an automatic mask -- it's a dysfunctional one (which makes the entire image disappear.
2) if, alternatively, I attempt to convert the path to a selection (in paths palette), I select "make selection...", I get the following response: "Warning: No pixels are selected." -- and I'll keep getting that warning until I select only one path in my saved set. Which means, I have to go through the arduous process of selecting outer path, making selection and then select each, individual, inside path, make selection (choosing subtract) from outer path.
WHAT A PAIN IN THE ASS -- and mostly a GIANT STEP BACKWARDS.
What changed here? How am I supposed to use the paths... is this new feature a feature? or just a bug?
C'mon Photoshop -- upgrades mean improvements not downgrades!