The answer is DENALI
The corresponding square is PARK PLACE
   by Dave Tuller (based on an idea by Brian Tivol)

Block Party

Well, the circles in the grid are a red herring and spell out "Sorry,
try again."

Here is the solution to the grid.  The circled letters are given in
lowercase.

TROAS#OSS#GENESiS
HEDDA#ROt#PaYMENT
CADDISFLY#AGREETO
###SNAFFLE#LONNOL
#SLOTH#AIMEE#DaTE
sTANDIN##FEET#SON
ERA#OBELI#LYNN###
AIL#MSWORD#ENNEAD
MPAA##SPOOF##WNBA
SEAAIr#ENrICH#THU
###ALOE#SASHA#ROB
RoM#ALLS##HAWSERS
ELON#LLAMA#SAKES#
TIrEOF#POMPEII###
OVERBID#BOyZIIMEn
READILy#INN#ANIME
TRUSTME#LGE#NgAIO

If you look within the grid, there are several regions where 4
identical letters form a square block.  If you read these letters from
top to bottom, you get D-E-N-A-L-I.  The answer is Denali.