1. First what you need to do is get a 3DFX patch for your version of BLOOD. You will either update your BLOOD version 1.0 to 1.20 using "R0020.EXE", version 1.11 (non-plasma) to 1.20 using "R1120.EXE" or Plasma Pak (v1.11) to 1.20 using "PCD20.EXE" file. Note that "PCD20.EXE" will also patch your OUWB even though it's said to not work with it. Get your patch here:
http://www.the-postmortem.com/files/
Put it in your BLOOD folder, and run it.
2. Get NOLFB and put it in your BLOOD folder. It can be found here:
http://buildxp.deathmask.net/files/nolfb.zip
3. Get dgVoodoo glide wrapper. Pick the one on top of this page:
http://dege.freeweb.hu/
Unzip all files contained within the archive into your Windows folder, but also unzip all .dll and .vxd files into your BLOOD folder. You may create shortcuts on your desktop leading to dgVoodoo.exe and dgVoodooSetup.exe files that are now found in your C:\Windows folder.
4. Put these batch files in your BLOOD folder:
http://www.the-postmortem.com/files/3dfx/glBlood.bat (*)
http://www.the-postmortem.com/files/3dfx/glCP.bat (*)
And overwrite your blood.cfg file with this one:
http://www.the-postmortem.com/files/3dfx/blood.cfg (*)
(note that sounds and music are turned off, and that the resolution has been set to 800x600)
* - right click, "Save Target As..." (IE), "Save Link As..." (Firefox)
5. Run dgVoodoo Setup from your desktop. Click on the "DOS" radio button in the "Platform" section on top of the window.
On the "Global" tab, check Windowed mode (for now) and make sure to disable "Working in VDD mode". You may check "Active in background" option if you want to experiment with multiplayer support sometime in the future. Make sure to check "Set mouse focus to application" because otherwise your mouse will not work, and "Always preserve window size".

On the "Glide" tab, set everything up as shown here:

Click ok.
6. Running BLOOD is simple.
- Run glVoodoo server from your desktop.

- While the shown window is still running in the background, run glBlood.bat file that I have provided.

NOTES:
- This does not emulate sounds. You may install and use VDMSound in conjunction.
- The resolution set in the dgVoodoo setup must be the same as the one that is set up in blood.cfg
- glCP.bat will switch some filenames and run Cryptic Passage. Next time you run it, the files will be switched back.
- 3DFX.EXE was released in it's alpha stage. It does not support voxels, it evokes visual glitches, and suffers from memory leaks. Good luck!