Once again, the procedure you follow sounds correct. I usually do the following:
1) open the BlockLib.xml
2) open the Gujer Matrix editor for the Category which is most similar to the one you plan to create
3) do all the relevant modifications (add components, processes, parameters, ...)
4) close the matrix editor
5) when asked for the category name, provide a different name - otherwise you will overwrite the existing category
This process will create the necessary msl files, add the relevant include statements and create a new Model Instance with the same name as your new Model Category (by default)
6) close and save the BlockLib.xml