When i try to run Blood Bowl on dosbox 0.71 i get this:

Internal error #1004 - Out of memory allocating buffer

Real highwater = 3090:73F0 (228508 bytes)
XMS highwater = 0

What does that mean and how do i fix it?
Nothing in dosbox redme or help file even mention this.

Do you get the same problem with older versions of DOSBox (0.70 and 0.65?

Yep.
Exactly the same problem.

and other games ran through dosbox give you the same error?
btw also post your computer specs, be as much descriptive as you can (rams and kind of processor, operation system aand how many free space do you have on hdd)

Did you make sure that you run this game from C:\Blood? Because otherwise I get a similar error message.