Help with battey cables.

I need help on something. I relocated my battery from the trunk back to under the hood due to serious cranking problems. I reconnected my cable from the starter to the positive terminal and ran my negative cable from the BLOCK to the negative terminal. As soon as I touched the negative cable to the terminal to my starter started turning over. This was with the ignition turned off.

Should I have connected the negative cable to the firewall or body then ran it to the negative terminal? The block is also grounded to the frame(body). I think that if I ground the battery tot he frame I should be good. Comments?