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Erhm... CBlue... I hate to correct you like this, but it isn't php code. It's Smarty code. In a Smarty template (sowwy
)
The problem is not the code, but the fact that the very first line takes an array ($block.stories) which is not filled with values.
The values are in the <{foreach item=block from=$xoopslblocks}> (or something like that) in your theme.html
The XOOPS theme system is not really geared for individual placement of individual blocks apart from the areas, which are pre-defined (left, right, center-center, center-left, center-right) so what you need is to define a new area (header, perhaps) and change the core files regarding block placement, adding the header area to the selectable options in system admin -> blocks
A little tough to do, though, so I wouldn't recommend that you do it unless you know PHP rather well.