Highly excited Rydberg states, neutral atomic states with one or more electrons promoted to states of large principal quantum number n are now commonly used for producing quantum entanglement. This is facilitated through the "Rydberg Blockade" effect where the presence of a single Rydberg atom blocks excitation of further atoms in a surrounding mesoscopic volume due to strong atom-atom interactions induced by the large dipole moments associated with Rydberg atoms. In this work, we report the first observation of this phenomenon in a hot atomic beam using very high n, n ~300 - 500, strontium nF Rydberg states. Inside the blockaded volume (size around 0.1mm), the Rydberg number distribution is sub-Poissonian. However, as predicted by theoretical calculations, due to the anisotropic nature of the atom-atom interactions, the blockade is incomplete. However, the blockade effect is sufficiently strong to enable detailed study of few-body atom-atom interactions and of entanglement. Doubly-excited Rydberg states having a pair of electrons excited to high lying energy levels are typically difficult to create and are short lived because of "autoionization" resulting from electron-electron scattering. Strontium Rydberg atoms are used to study this scattering and we demonstrate an efficient mechanism to eliminate "autoionization" pointing to the production of long-lived strongly correlated two-electron-excited atomic states.