How to fix this problem in Blender?

I want it to look like the wood block in Minecraft, but as you can see the texture flips diagonally across on each face.

You need to unwrap the faces/meshes of your cube and map each face to the texture in the UV editor.

Here's the blender wikis on it, but you might want to search youtube for a better example:
http://wiki.blender.org/index.php/Doc:2.6/Manual/Textures/Mapping/UV/Unwrapping
http://wiki.blender.org/index.php/Doc:2.6/Manual/Textures/Mapping/UV