My boss wants me to make some title block templates in paper space, we are using Auto CAD Mechanical 2010. Any Suggestions would be awesome

http://discussion.autodesk.com/forums/category.jspa?categoryID=8

The discussion groups are very helpful with troubleshooting. I use it frequently at work when something just doesn't work right.
Best way to make a template is to start with a clean blank drawing, create what you want to see in your paper space (borders, plot limits, page information (date, time, sheet #, etc), place for your signature and seal, company info, etc) and 'saveas' .dwt filetype. I am fairly sure CAD has built-in templates if you want to see an example.

What are you needing?

he want's a D-sized title block in paper space that we can just call up drop a drawing in

If you want it to be included with every drawing you open it is very easy. When you open a new drawing in CAD it will prompt you for a template (or if you open CAD fresh it will auto load the default template). If you modify this template to include the default titleblock it will be in every drawing you open. (I recommend saving a copy of your default template so you can come back to it if necessary).

Like I said, start with a blank drawing, draw in what you want (I recommend setting the bottom left corner at 0,0 in PS for consistency) and 'save as' a .dwt file. I believe the default new drawing template is titled "acad.dwt" (at least it is with my version). You can modify the default template that CAD opens from the General Options -> Files -> Template Settings -> "Default Template File Name for QNEW"

Another method would be to create a titleblock as a standard block (extension .dwg) and insert it into the drawings you wish it to be in. In that case the block would be in model space but you could insert it into the paper space of your working drawing. If you want to get fancy you can create attributed text within your titleblock to change things like date, time, title, sheet #, revision, etc.

I agree with ^.
I would make a titleblock with attributes in model space and insert that drawing into what ever file you need a title block for; if you use attributes then it will prompt you for the valuse of dates, drawing title, etc when you insert the file and you will not have to go select text and edit after the file is inserted. Its a good idea to set up the title blocks for all possible sheet sizes so they're ready when needed.

We're using Civil 3D 2009 and standard AutoCAD 2009. We use attributed text within our titleblocks and have the attributes automatically updated with AutoCAD's sheet set manager. Pretty cool.
In our situation we would have a single drawing that contains the entire site design package. With a combination of multiple layout tabs and a layer manager we are able to use a single .dwg (typically with one xref) for a project. Granted our Civil sets are typically smaller than building plans but this cuts down on the amount of files required. Sheet set manager is pretty cool. For instance we need to add a page into the middle of our 15 page set. Sheet set allows us to insert the standard titleblock in the correct sequence, title and renumber all sheets, and it automatically inserts other project related info into every sheet (project number, location, date, etc) without having to modify individual sheets. Pretty sweet, but it took some getting used to. It also allows mass plotting of sheets (even if they are contained within multiple drawings).
Autodesk has some very powerfull software and I know we are just scratching the surface with what we use it for.