I have a block were the insertion point has been edited and moved. After it was edited, many new blocks were placed on the drawing with the new insertion point. Is there a way to move all the blocks that had the old insertion point in relation to their rotation and get them back into the right position on the drawing?

Tough question, but maybe you could open up each block individually and move them to UCS world; save, then re-import?

I have many blocks on the drawing but they are all the same block. If were to edit each individual block, i may as well just move them the 3 inches and get them right back to were they need to be.
Maybe my question should be....Is there a way to move many blocks based on their rotation?

If you have many of the same blocks inserted into the same drawing, one update to that one block will globally impact them all upon reload. Simply open up the block in its native file location (do not attempt to edit in-place) and move the object about the x,y,z axis as needed. Save it. Now open up your dwg and they should all move accordingly.

I understand that doing that will bring all the old blocks with the old insertion points back to its relative location, but what it will also tamper with the new blocks that have the new insertion point. What i am looking for is to select all the old blocks which will be easy because they are on a different layer then the new ones, and move them a certain distance based on their rotation.