I just can't figure out how to make small blocks and cleats.....
You could copy the typical blocks made for models made by Caldercraft, and use walnut to create the shape, then drill a hole so the line goes through.
A nicer option if the scale works out, would be the blocks they make for RC model yachts. They make them totally functional so they are not cheap. last time I looked they were $12 each.
Try sailsetc.com, harbormodels.com, pekabe.com, wetgoose.com midwestmodelyachting.com
(not sure the exact urls but those should be close)
Best option is:
http://www.cap-maquettes.com/contents/en-uk/d1062_maquette_accastillage_voile.html
A french company that makes almost everything you can think of for model yachts. Shackles, Blocks, etc
A friend of mine builds model RC boats and told me about them. Decent prices and great stuff.