Other Drupal users say "cck blocks" and "block reference" work together. My current setup:

On one content type I have a "block reference" field. Since that is a cck field, at the bottom "cck blocks" settings are there. I have the settings to "enable".

At the node form (node/x/edit) I can choose the CCK - Block Name block just fine. But when I submit the page I get a 500 error.

I tested this module with a regular cck field, textfield, and I had no issues. So I believe the problem arises due to "block reference". Unfortunately I am not getting any errors in watchdog nor my error log.

Let me know if you need more info.

Thanks