Bad thing about the boundary command, it often fails with parcels....so much so that I rarely even try to use it any more.
Wait a minute...didn't Luis respond to this? He has/had a very slick program that that does this far better than the Boundary command. Luis, I wasn't trying to downplay wha you posted, I just knew that Kelie has C3D and was offering that approach.
Kelie, search for Luis' GPoly. I think that's what he had posted the link to.