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You are a describing a dedicated server when we know DS2 uses a peer-to-peer system. It seems like Peerblock is simply having an issue with how Steam works, or OP didn't configure it properly.
EDIT: Have you tested it with other applications?
EDIT: You should read a bit on vpn and proxy before mentioning them in conversation, btw. Friendly advice.
Edit: you may want to google for Centralized peer to peer server.
If I don't want to be invaded I play offline