Having not witnessed the context in which you heard it, I may be wrong, but to "hard block" an engine means to add a hardening epoxy to the water jackets, strengthening the block. It reduces the capacity and the effectiveness of the cooling system, but it isn't commonly done to daily drivers. Below is a link to a picture of an engine that threw two rods so violently that the sides of the block were blown out. You can see just how thin and fragile the block really is. The brown area is the water jacket. That's the area where the epoxy goes.
Picture of Broken Block
Take care,
-Chris
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Retired Moderator
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[This message has been edited by PKRWUD (edited 11-07-2001).]