Cut/knock one shape out of another shape

sorta kinda works the same way in Photoshop. Use the fact that a selection is defined independently of layers:

assuming that the object to subtract is all by itself on it's layer B:

1. Cmd-click on the layer icon of layer B, to select the shape's outline
2. make layer A active (the selection is still the outline of the shape in B)
3. hit delete (or menu Edit->Clear)
4. hide or delete layer B

Let's now assume your object is in the form of a vector mask. You could rasterize it, then it's normally editable. Or, you could create a layer mask from the selection (you created earlier from the other vector mask) to hide what's underneath.

stumble across your question, don't know if this answer might help or not since you have asked long ago. From your elaboration, I think you can work out this way:

Use direct selection tool.

Select vector B and click on the path of circle B, select the whole path by using shift key (select all path dots, 4 dots)

Copy (Ctrl+C), then select vector A, click on the path of circle A, Paste (Ctrl+V).

Up until this, you will have two different paths in the same layer presumably on layer vector A.

With pen tool function selected. Make sure the path B still highlighted (all path dots), choose the Subtract from shape area from the available options.

Then you will get your donut shape, while maintaining as a vector. Hope it helps. =)

ps: I'm using CS2, it could be different in other versions.

I have been trying to do this (well atleast what i think you are trying to achieve) for quiet a while now.. but never knew what to do.. i understand this is old but i thought for those who are still looking around for an Updated/more specific(CS6) answer all you have to do is

select the two shapes in layer panel with ("cntrl + click" (this is for windows))

i made sure that the one i cut out is on top of the other(i am certain that is necessary) and than right click on the two on the main screen.. (work area) and there is a tab available that says "subtract front shape" and that works perfectly..

Hope that helped..

You should be able to use the Magic Wand tool in photoshop to select the shape then EDIT >> CUT. Depending on the version of photoshop you can then use the new Content Aware Fill to fill in the spot where the shape used to be.