We have ours set up in EPDM and everybody's machine actually references the EPDM location for all items found in the System Options -> File Locations. This actually works well for us. The administrator set the folder to always get latest so we have updated templates, drawing blocks, etc. It's nice because everything is always up to date for everyone at any given time.
As for a project creating drawing blocks, that sounds like a headache in terms of version control and duplicate files all over the server. I would stay away from that personally.