I know that I have found this answer before in this forum, but I have been looking for the last hour with no luck of finding it again. I am using 3DS Max and using a 8 sides cylinder to snap my points to to make a nice hole. However my verts are snaping to the cylinder geo that I am basically using as a guide. What is that I need to turn on or off under the snap tool in order to keep the verts on the plane they are currently on? I hope this make sense.
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You need to create an NGon before you create the new vertices ( so they can snap to the face ). Just select the border where you have your gap now and use the cap tool. Start the cut from one of the border vertices and create nice quads around the cylinder. Then delete the cylinder face. The snap settings are fine if you only have Vertex selected.
Good luck!
You can either turn it on with alt+F3 or right click on the snaps -> options -> Use Axis Constraints.
And now before moving a Vertex you should mark the Axis on which you want to move along
Attention, you then maybe snap it multiple times, to get it into the right position.
http://designlab.ufsc.br/iphone4/images/geopoly_t.jpg