Your soundcard works perfectly! (tm: Warcraft sound setup)
If the game ever complains about missing CD Audio tracks (or crashes unexpectedly, displaying text over the graphics), try running it with the command line parameter
Works flawlessly, even in high resolutions thanks to the DOSbox VESA support.
Follow the DOSbox networking guide to enable IPX network connections and let the BloodBath (tm) begin!
If the game pauses during startup, displaying error message stating that there is too little memory, try the following. By default, DOSbox allocates only 16 MB of RAM, which is a bit too little for Blood. To avoid seeing the message informing you of such condition, open your dosbox.conf configuration file, find section [dosbox] and alter the value named memsize to be at least 38.
Furthermore, here is what seems to be optimal setting for Blood:
memsize=64 (example value, see above) core=dynamic (anything else makes the game crawl, even on powerful machines) cycles=max (this is rather self-explanatory) scaler=none (since you would want to set the high resolution in-game) output=overlay (or surface, using opengl makes the game unreasonably fuzzy and hard-to-read)