Hi John,
Can you please go to Settings > Spam Filtering and verify that your Blocked Sender Action is set to Move to Junk Email Folder? There's an option to set it to None, and I'm wondering if it may have reverted to that option.
I have my action set to Move to Deleted Items Folder, and it does appear to be working correctly. I see new messages that were delivered to my Deleted Items folder this morning, and they show Blocked Sender in the header. In the meantime, however, I'm going to change my action to Move to Junk Email Folder and see if I can replicate the problem.
Andrea Free
SmarterTools Inc.
877-357-6278
www.smartertools.com