Hi Louise,
Sounds like you're using Cytoscape 2.8. I think the first step would be to try to use Cytoscape 3.3, which is our current release. BioGrid networks are available directly from the Welcome Screen. Once you've read in the network, note that the "name" column contains the internal BioGrid (Entrez Gene) identifier. You will need to map that to some useful identifier (this is probably the problem you're having in the older version, also). One easy way to do that is to install the "bridgeDB" app, which will allow you to map from the BioGrid identifier to any of a number of useful identifiers. Alternatively, you could create your input file to use the BioGrid identifier rather than gene symbol. Once you have selected the desired set of proteins, the next step would be to look at Pesca, which calculates the shortest path between nodes. That might allow you to create the network you want.
An alternatively approach might be to load your network from STRING (using the StringApp) rather than BioGrid. Still doesn't solve the intermediate node problem, but it may be a shortcut to getting the initial network.
-- scooter