Finally starting to get back to this. Messing around some more I did get a little further with it, though sadly its not what I was intending the outcome to be like with it.
I can get the blocks to inserted with a specific base point, and rotation. Though I don't see the block prior to insertion unlike the "Insert" command. I only see viability after I have my settings down. Even then right now I have to select a rotation, its not like I'd select it every time so there is a few disadvantages right now. As well selecting a new base point for insertion.
Used most of the code here, and had to re-adjust it to work with mine. Thanks to Jeff's code earlier to help me tweak it to make it work right.
What helped me along, converted the code from C# to .Net
http://forums.autodesk.com/t5/NET/Code-to-insert-a-dynamic-block-into-the-current-drawing/m-p/2849502#M21787
