When block is outside of level boundaries, it means that your max boundary size is too small. Default is 56000, increase it to accomadate your level or reduce the size of your level and componants so that the whole lot fits inside of the WED panes by about one quarter of the space available at full zoom-out.
Keeping your objects within this zone will always ensure things work well as the engine can easily render what it needs to.
Go away from the center (the centre is the middle of infinite space) and you will experiance probs with objects not showing when you reach a certain stage, close to your boundary, where the engine cannot successfully render the objects.

Hope this helps