[QUOTE="God's Beard!";67629036]So it still counts as having blocked a creature, just no damage went to either one?[/QUOTE]
Yup. Assuming the blocked creature doesn't have trample, it won't deal any damage to you or the 'flickered' creature; it was still blocked, but now finds itself unable to hit the creature blocking it.
This doesn't work on tramplers, since the trampler will just think "oh, I've dealt lethal damage to everything blocking me (nothing); I'll just go and deal the rest to the defending player".
If you flicker an attacking creature, it returns to the battlefield as a new object (i.e. no longer attacking). Anything blocking it will suddenly find itself not fighting anything, and no damage will be dealt.
The same applies for anything else that causes a creature to leave the battlefield; for example, you can block an attacking creature, then sacrifice the blocker before damage is dealt; you won't take any damage, and the sacrifice effect will presumably be more useful than letting the creature die in combat. For example, you can block with Sakura-Tribe Elder, then sacrifice it to search for a land and avoid taking damage.