There was a previous question: How to Insert an Image in to an Ellipse and Hide Overflowing Parts. Dom answered the question and I was using that method successfully. However, now some setting must have been changed accidentally or something because now, using the same method, I get the picture cut out leaving an outline of it instead of placing the picture into the shape. What setting would cause this inversion?
Layer 1 is your shape
Layer 2 is your image (Should be directly above Layer 1)
1) Select layer 2 and press CTRL + Alt + G or CMD + Alt + G to create clipping mask.
2) You can also hold alt and left click between the 2 layers.