Ok, I've got Blood working in WinME now, and I have a feeling a lot more games will now work.
Basically, you have to patch WinME to work with DOS.
There are many around that 'Claim' to do this, but I've only found one that really worked.
It will modify "IO.SYS", "COMMAND.COM" and "REGENV32.EXE"
The filename is MFDDME13.zip
I can now use xmsdsk to create a 128Mb RAM disk for Temp, Temp Internet, and other log/temp files. Which all drastically speeds up WinME beyond any OS I've used.
I will now work on a lot of DOS games that didn't work before.