MIKE SHE Interpolation Error from domain

I am relatively new to MIKE SHE, so it might be a easy one. I am using shape file to define model domain and grid. When I preprocess the data, it says missing value in dem file to generate value for  domain cell. I tried converting the prepared dfs2 file of topography to shape file and reclassified the shape file to single polygon. The problem still exists while using the generated shapefile.
I will be highly grateful if anybody can help me out.

Thanks,
Sharad

Sharad - this probably means little at this point, but in case anyone else runs into the same problem....

I have encountered this same issue along my model boundary. Here when assigning properties via DFS2 or SHP, the grid discretization along the model boundary may be flagged as UNDEFINED.

The solution to this, is to expand the outer boundary of your properties files, well beyond the model bound. 

See example image where model bound is in blue.

 - Br,
Tim