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I had the same problem running 2.0.13. Most all of my custom blocks would not work, but almost all of the affiliate banner I was running would not show up. I did a source view of the page to find out that there was no HTML/PHP code at all in the custom blocks.
After reading this post I decided to try something drastic, so I backed up everything and upgraded from 2.0.13 to 2.2.3a. This still did no solve the problem, but did totally screw up the front page center blocks. I found out that it was easily fixed by going into the blocks admin page and setting which pages they are supposed to be visible.
Last I decided to try the latest update from 2.2.3a to 2.2.4 out of desperation. Although at now the code for the link shows up, the image code is not showing up. After a little testing it seems that XOOPS has problems with images that are external to the site itself. At least from what I can see that is the problem.
Has anyone else used external images in a block and had it work. Sometimes it will work, but most of the time there is nothing but blank.
eToolMan
Tools & Tech - eCommerce Resource Center