Kindo: I just want to add that wader2k is correct; you are supposed to be able to execute a sword swing (either fast or strong) while holding block. This action does not mean you can attack while at the same time blocking all incoming blows - it's just a convenience thing that you don't have to let go of block before you attack.
It has always worked for me. I checked it right now, and it's still working. I can stand there, holding block while I'm facing an enemy (no alt needed), and then hit LMB or RMB to execute an attack. It works just as well when facing multiple opponents. Why this has stopped working for you, wader2k, I don't know. I'm sorry. :(
You definitely have it right! It is only a minor inconvenience as all I have to do to get it working again is restart the game.