It depends on what you mean by blocks. If you just mean the typical macroblocks than I doubt this has anything do with multiplexing, it is just a result of a lack of bitrate in that scene. Even with 2500kbits some scenes just won't look perfect. The test would be to play it on your pc, as it has no compliancy restrictions. If the blocks are still there than you may need to increase your bitrate or attempt to use some filtering. If however these blocks are severe distortions like green blocks than its possible that mux rate could be off, but unlikely. Usually an incorrectly multiplexed SVCD/DVD just leads to sync problems. To be safe I would always use bbmpeg to multiplex SVCDS.