I am trying to use the difference mode to make a hole.
But when I select Difference and the object it does this?
I removed all the doubles and recalculated normals on both objects but it still does this?
Blend file
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1$\begingroup$ It is hard to see what are your objects before the boolean operation. Could you share the initial file here (before the boolean applied) ? blend-exchange.giantcowfilms.com $\endgroup$ – lemon Jun 24 '16 at 17:19
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$\begingroup$ Sorry, heres the file: <img src="http://blend-exchange.giantcowfilms.com/embedImage.png?bid=1499" /> $\endgroup$ – Muly Jun 24 '16 at 17:23
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It was a scale / normals problem : your objects scales were negative.
I applied rotations and scales ctrlA, then adjusted the normals (in edit mode ctrlN for both objects).
Then your model is ready for the boolean (difference) : 
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There is also a couple add-ons to fall back on if regular Boolean does not work. These are 'Booltool' and 'Booltron'
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$\begingroup$ Please add some steps as to how these add-ons help vs a normal boolean and what features of these add-ons need to be operated. $\endgroup$ – Ray Mairlot Jun 24 '16 at 21:47
