Magento creating CMS blocks from xml block - magento

Question

<reference name="left">
<!-- Layered Navigation Block -->
<block type="catalog/layer_view" name="catalog.leftnav" template="catalog/layer/view.phtml" >
<action method="setCategoryId"><category_id>2</category_id></action>
</block>
</reference>
I was able to create a CMS block from the above code
{{block type="catalog/layer_view" category_id="2" name="catalog.leftnav" template="catalog/layer/view.phtml"}}
How would I create a CMS block from the XML below...it have a bit more to it.
<reference name="content">
<block type="catalog/product_list" name="home" template="catalog/product/list.phtml">
<!-- Product List View -->
<action method="setCategoryId"><category_id>2</category_id></action>
<block type="catalog/product_list_toolbar" name="product_list_toolbar" template="catalog/product/list/toolbar.phtml">
<block type="page/html_pager" name="product_list_toolbar_pager"/>
</block>
<action method="setToolbarBlockName"><name>product_list_toolbar</name></action>
</block>
</reference>

Answer 1

Unfortunately you cannot do what you need.
Here is why. When using the {{block}} directive magento automatically calls toHtml after creating the block and returns you the html (rendered block).
This directive also does not support blocks inside blocks.
When working with layout files, the blocks are not rendered automatically. First the layout file is parsed, the block classes are instantiated, they are assigned as child blocks or parent blocks and everything is rendered at the end.
In your case you will need something like this:
{{block type="catalog/product_list" template="catalog/product/list.phtml" name="home" toolbar_block_name="product_list_toolbar"}}
But this won't work because the block with the name product_list_toolbar does not exist yet.
If you try to create it before with something like this:
{{block type="catalog/product_list_toolbar"....}}
still won't work, because the block will just be outputed (most probably you will get an error too).
Blocks generated using {{block}} are not added to the layout so they cannot be referenced in other blocks.