I did not have any problems with the block puzzle. I will check to see what information I have on my particular rom version. I have read about people having that problem, but assumed it had since been fixed in the emu.
In the meantime, have you tried this?
I know this is an old thread, but this bug still is present in the latest version of sixtyforce. Here is how I got around it, with some help from the original post:
So, the key is that the blocks will fall after you shoot the picture. If you're facing the picture, the one in the upper left corner (the one with the torch) needs to be there. So you need to solve the puzzle but make sure that the blocks are lined up with that upper left one in the exact same spot.
Because of the invisible walls, you won't be able to do this. So what you have to do is move that block out of the way by one pull or push, then move the other block to where it needs to go, and then put that upper left one back.
This takes more than the minute you're given, so you just wait through the rest of the cycles until it cycles back to those images on top. Make sure that one block is pulled out so that you can then push it into place once they cycle back.