Just a quick update:
It appears that something is actually up with the VDS itself. After filing a support ticket, eventually I was directed to the CEO of NFO and we're currently trying to work out the issue. At this point, he's scheduled a Xen upgrade on their servers for tomorrow morning, but we're not sure where the problem lies just yet.
It's not a problem specific to Blockland, but I figure I might as well post the status of the issue for anyone else that encounters it. All I can say is that contacting the server provider is a good thing to do if your VPS isn't working quite right.