Content Blocks not working after upgrading WP to 3.1.3

I recently upgraded WP on https://www.AshevilleBallroom.net to version 3.1.3. Prior to the upgrade, I had added two content blocks on the left, they show on all pages. After the upgrade, I cannot add additional blocks (tried blanks, one-word blocks, and copy code from the block that is working) and after editing the text on the first block there no blue background anymore. Any help would be much appreciated.