Please help! Whenever I move the text alignment horizontally to form a block quote, there is a huge white space that automatically apears before and after the block quote paragraph. I´ve already made sure word is set not to add any space before and after paragraphs, but that´s not it. Is this the devil´s work??

Turn on display of hidden characters (the backwards P in the Home tab) so that you can see what is causing the space. If not characters appear in the white space, place your cursor in the paragraph that's indented and recheck to see if above and below spacing are still set to zero.

First, space before/after paragraphs makes text much easier to read.
Second, how, exactly, are you blocking the quotation? What steps are you using?