Using Django 1.2.1, any use of blocktrans breaks my template. Eg
{%blocktrans%}text{%endblocktrans%}
Results in:
Django Version: 1.
Answering my own question, I'd forgotten:
{% load i18n %}
In the top of the template. This is required to use the blocktrans tag.
Edit: See orokusaki's improved answer below to fix this permanently for all your templates.