Deformed faces around a hole

Hello everyone. I am new to blender. could someone please help me. I am trying to cut a hole in a plane by subdiciding the plane and deleting a vertex then add circle and fill faces then I extrude the circle down to make the sides of the hole and subdivide to make it smooth . I attach an image of the deformed faces I am getting. Is there anyway to fix this? or is there an easier way to get this done?

Remove any double vertices (select all vertices andW / remove doubles)
Recalculate face normals (select all vertices and Ctrl+N)
Try adding an Edge Split Modifier, you can us the edge angle in the modifier settings or make specific edges sharp by selecting them and Ctrl+E / mark sharp

Thank you for your reply. There were no double vertices. It cleaned up a little after i used recalculate normal. When I use flat it appears clean but the hole looks boxy but if I use smooth it looks like this.

Thanks for the reply. It did not completely fix the problem.