Haven't had a chance to read the whole thread, so I don't know if anyone has mentioned this before. I followed the instructions located here:
http://buildxp.deathmask.net/
to set up Blood on my PC. A lot of work, but in the long run it runs much smoother and sounds a LOT better than the DOSBox configuration in my opinion. Just another option.
I also have it running great in DOSBox 0.73, which was easier to set up than this method.