The Ring of Loki and it's counterpart ability in the Ring of Aesir simply don't work. They create the wireframes properly showing what blocks are bound, but when placing/breaking blocks, nothing happens, even with a full Greater Band of Mana or even a Creative Mana Tablet.

Describe exactly what you are doing.

I right-click on a block making the thicker wireframe, then right-click on a different block nearby making the thinner wireframe, then I right-click the original block as the book said. After that, the thick wireframe disappears and the thin wirefrime of the bound block will move around when I mouse over a different block. When I dig a block such as dirt or grass when the wireframe is over another of the same block, it does nothing. Same goes for placing a block, wether the wireframe is over another block or air.

Ok, you're not sneaking.

Having to sneak while digging or placing was not mentioned in the Lexica, but yes, that seems to be what was wrong.