Rambunctious References

So I'm working on a project involving multiple sheets. 
I want to replace all the title blocks with a new one.

Previously I saved the tblock as a cell, and individually placed each one. As this project grows the replacement is taking more and more time.
I know very little about the reference system, specifically how to designate what part of the file to reference (do I use the fence tool?). And where to put the original reference file (Does the tblock have to remain in the same folder for it to work? Or is it self contained?)

I know there are threads that explain it, but I can't seem to find them.
suggestions, or reference links would be very helpful.  

Thank you!

-KN