I've tested your contrib on 6.0 from SME
and 6.01 from Contribs.org. The SME box does
the job perfectly - nice blocking but lan acces!
The Contribs.org well everything seems ok, but
trying to block a specific IP and then testing that
workstation does't affect internet acces at all.
Have you portet this ability from your other contrib
mac and ipblock? That contrib in beta gave me trouble
when trying to add blocked adresses either MAC or IP.