If you followed the link http://webhelp.esri.com/arcgisdesktop/9.2/index.cfm?TopicName=An%20overview%20of%20the%20Neighborhood%20tools note that the current neighborhood implementation that we are talking about implements the ArcGIS 'Focal*' functionality, not the 'Block*' ones. Note also that ArcGIS is limited to 2-d, and a 3x3 neighborhood.