The error message would, for example, look like this:
orsrc\loadsave.cpp(501) : File Error #11
This seems to be a problem with the files= setting in config.nt. Note that I am not talking about the config.sys setting in VDM Properties, but about config.nt which is used by windows and lies deeply hidden in the bowels of your System32 folder. The setting defaults to "files=20", which is no good.src\demo.cpp(437): File error #11 loading demo file header
Solution:
Press Start->Run...
Paste the following line into the box:
and press enternotepad %windir%\system32\CONFIG.NT
Now scroll down, and change files=20 to files=40
Save, you're done!
It it already was set to 40, I have no idea what's wrong, sorry. Also, I really don't know why some people apparently do not have this problem, and others do. I only know that this worked for me and others, too.
This could also work for people where VDMSound just starts and exits, since you just cannot see the error message. Note that there are many other problems why Blood wouldn't start, sorry, I cannot help there.
Also, if you use Windows98 and have this error, this solution could also apply to it, but you have to search for "config.sys" in the root directory, i.e. "C:\"
Please post your feedback.