I can't reproduce this problem, for example the following works for me
on the latest version of Org-mode.  I think perhaps you may not be on
the latest git HEAD.

Thanks again for this great contribution -- Eric

** define a block with a name for noweb expansion
  :PROPERTIES:
  :tangle:   yes
  :noweb:    yes
  :END:

#+source: simple(something="something")
#+begin_src emacs-lisp
 something
#+end_src

another block including the first block
#+begin_src emacs-lisp
 <<simple(something="something else")>>
#+end_src

--
Eric Schulte
http://cs.unm.edu/~eschulte/