When I received my first pay check I noticed that after federal with holding it said Tax Blocked also said the same thing after state with holding. What does that mean? Thank you

This is an issue on how your employer's payroll system handles tax withholding, so the person to ask is your employer.

That said, it appears that the payroll system is, for now, over-riding the tax withholding on your pay, probably because you have not earned enough income in 2008 to be subject to state and federal income taxes for 2008.

I suspect that the block will be removed on your first paycheck in 2009.