Change Text of Create an Account in Login Block
The above mentioned problem can be easily solved by using hook_form_alter hook_form_alterhook_form_alter(&amp;$form, &amp;$form_state, $form_id) . You can use that function in our template.php of your custom theme .

In template.php write..

function custom_theme_form_alter(&amp;$form, &amp;$form_state, $form_id){
  if( $form['form_id']['#value'] === 'user_register_form'){// For registration form on 'user/register' page
    $form['actions']['submit']['#prefix'] = '&lt;div class="test"&gt;';
    $form['actions']['submit']['#value'] = '--your text--';
    $form['actions']['submit']['#suffix'] = '&lt;/div&gt;';
  }
  if( $form['#id'] === 'user-login-form' ){  // For login block that comes with drupal core blocks and can be assigned to any region. 
    $form['links']['#markup'] = '&lt;div class="item-list"&gt;&lt;ul&gt;&lt;li class="first"&gt;&lt;a href="user/register" title="--your text--"&gt;--your text--&lt;/a&gt;&lt;/li&gt;
&lt;li class="last"&gt;&lt;a href="/user/password" title="Request new password via e-mail."&gt;Request new password&lt;/a&gt;&lt;/li&gt;
&lt;/ul&gt;&lt;/div&gt;';
  }
}


This will change your text from 'Create a new account' to your custom text. And don't forget to clear the cache :).

Reply on this thread if you still find some problem.