That's correct; you cannot import info directly from Schwab into the H&R Block software. I've used Tax Cut for years (I'm a Schwab customer), and I copy the info I need from Schwab into an Excel file, and then use a third party macro (from InvestoTeK, called ConvertExcel2TXF, $5.00) to make the conversion of the info from Schwab into the needed format (.TXF file) which can be imported. I discovered this last year when doing our 2009 taxes and it works great. You just pay for the macro and download it online. (I have no connection to InvestoTek except as a satisfied customer). FYI if you are a Schwab customer you can buy TurboTax through them for a discount. I just prefer the H&R Block software to TT.
I'm a long time H&R user but this year I'm switching to TurboTax because I'm not willing to jump through all these hoops. It's ridiculous that H&R hasn't added the ability to import from Schwab- TT must have a sweetheart deal with them.
Starting with the 2012, you can directly import. However beware that if you have multiple accounts linked to 1 login (such as custodial accounts) it will download all the data for ALL accounts which is not always what you want