I seem to be missing some arrows for manipulation of the block. For every block that I have placed, I seem to get only arrows for one of the random axes, instead of all three of them. Where are they?

You can use the up and down arrow to move along the vertical axes, to move on the flat axis you use the arrow in the middle - you can hold SHIFT while dragging to limit to a single axis.

Okay, that sorta works. However, the moment you pass the 0,0 point it tends to snap (momentarily) to the other axis, resulting in jittery motion. Not ideal, but okayish to work with I guess.