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Hi there, I'm very sorry we didn't answer this sooner. We have been used to working only in the dev.xoops.org site, but will be monitoring these forums more closely now.
Anyway, the problem you ran into is probably because you did not include the necessary files in your block before using displayForm there. You would need to add:
include_once XOOPS_ROOT_PATH . "/modules/formulize/include/formdisplay.php";
displayForm is in that file and is not available unless that file has been included already in your code. Pageworks does this for you, but if you are putting custom PHP code in a block, then you have to do it manually.
If you would like to discuss development issues in detail, please head over to the support forums for Formulize on dev.xoops.org where we try to centralize all relevant info.
Good luck,
--Julian