What does the debug output look like when a new block is found? In the Bitcoin-QT client, what does the debug.log look like when a new block is found?
I got the following output when I set gen=1 on test net:

BitcoinMiner:
proof-of-work found  
  hash: 00000000502cfb2fe549f1d672ff60cab179b8c91c95fe6d4d9dce490a8e00e8  
target: 00000000ffff0000000000000000000000000000000000000000000000000000
CBlock(hash=00000000502cfb2fe549, ver=2, hashPrevBlock=000000008efd2a2075c9, hashMerkleRoot=cae3a8d5d1, nTime=1355478291, nBits=1d00ffff, nNonce=119890730, vtx=1)
  CTransaction(hash=cae3a8d5d1, ver=1, vin.size=1, vout.size=1, nLockTime=0)
    CTxIn(COutPoint(0000000000, 4294967295), coinbase 03b39b00010e062f503253482f)
    CTxOut(nValue=50.00000000, scriptPubKey=031e72826fe94305e81a34e34ea316)
  vMerkleTree: cae3a8d5d1 
generated 50.00
keypool keep 6
AddToWallet cae3a8d5d1  new
NotifyTransactionChanged cae3a8d5d1feb8e058ddf4a30d021a9f1f85775b474456f4d6b595ffd832b7f3 status=0
updateWallet cae3a8d5d1feb8e058ddf4a30d021a9f1f85775b474456f4d6b595ffd832b7f3 0
   inWallet=1 inModel=0 Index=0-0 showTransaction=0 derivedStatus=0
SetBestChain: new best=00000000502cfb2fe549  height=39859  work=4384611213659391  date=12/14/2012 09:44:51

ProcessBlock: ACCEPTED
CreateNewBlock(): total size 1000
Running BitcoinMiner with 1 transactions in block (189 bytes)
CreateNewBlock(): total size 1000
Running BitcoinMiner with 1 transactions in block (189 bytes)
CreateNewBlock(): total size 1000
Running BitcoinMiner with 1 transactions in block (189 bytes)
CreateNewBlock(): total size 1000
Running BitcoinMiner with 1 transactions in block (189 bytes)
keypool added key 110, size=101
connection timeout
keypool reserve 10
CreateNewBlock(): total size 1000
Running BitcoinMiner with 1 transactions in block (189 bytes)
CreateNewBlock(): total size 1000
Running BitcoinMiner with 1 transactions in block (189 bytes)
CreateNewBlock(): total size 1000
Running BitcoinMiner with 1 transactions in block (189 bytes)
CreateNewBlock(): total size 1000
Running BitcoinMiner with 1 transactions in block (189 bytes)
received getdata for: block 00000000502cfb2fe549
received getdata for: block 00000000502cfb2fe549
received getdata for: block 00000000502cfb2fe549
received getdata for: block 00000000502cfb2fe549
received getdata for: block 00000000502cfb2fe549
received getdata for: block 00000000502cfb2fe549
received getdata for: block 00000000502cfb2fe549
received getdata for: block 00000000502cfb2fe549
received getdata for: block 00000000502cfb2fe549
received getdata for: block 00000000502cfb2fe549