Razor blade works well and is what I've used in the past before I got a die grinder setup, but it does leave some junk behind as it can only skim across the top "peaks" of the cast iron surface.You can do better if you have a die grinder. I found those scotchbrite rotary pads used on the ends of die grinders work amazingly well for removing all old gasket material but leaving the metal unmolested. They come in 3 different grits: ultra fine, fine and medium. I think fine or medium would be appropriate for cast iron block surface with light pressure. Ultra fine with light pressure would be appropriate for aluminum head surface. They will blow junk around though. This link should be useful: http://www.sa-motorsports.com/blockdiy/blkdiy.shtm
I am about to put my freshly redone head back on my 1.6 TD , and am wondering how 'spotless' the surface of the block should be? I scraped off what i could with a plastic scraper and wiped it down with degreaser, but I can still see a few spots where there is a very fine layer of the old head gasket, for example at the back of the block, there is still a blue line from the old gasket and a few other spots. Do i need to remove this? The bentley says not to sand the block, so I dont know what else I can do other than what I have already done