Honestly I'm unsure why it isn't working :-( We've since added a much more complex tutorial to the Vanilla server and no longer use this one. When we copy and pasted the schematic on our server it worked fine without issues, perhaps try updating (or maybe even rolling back?) your version of MCEdit, I believe this was done in 1.6.4, we're now on 1.7.2 on our server and as I mentioned don't even use this tutorial anymore I just left it for people that might find it handy.
Grief Prevention tutorial House on March 12th, 2014 04:12 PM EST
