I would just like to know if there is any way I can disable cpu emulation so blood will directly run with my 2.4ghz cpu.

Not with DosBox no. Either use Microsoft Virtual PC or upgrade to a faster processor.

For instance if you use a Core 2 Duo E6600 you should be able to play all Build engine games at 50+ FPS @ 800x600 or 40+fps @ 1024x768 in DosBox.

Also make sure that your using DosBox 0.70.

Finally you should be able to play Blood in Windows XP, there will be a loss of sound quality compared to 98 but it should run fine. You'll need to use NOLFB and VDMSOUND to run it and depending on your video card you may need to use vgafix.

I've tried VDMSOUND and all that stuff, and Dosbox is the only thing that gave me complete functionality in blood. all the other build games have ports made for them already, and I use them.

I had blood playing on XP before but I didn't have network support.
Dosbox is the only thing that has everything I need to run co-op play with my brother.
He plays it on a 3.2ghz HT processor, so I don't think having dual cores is going to help, unless dosbox is compiled for multiple threads. (according to how it plays on the HT it isn't)

PS. the question still stands, how many cycles is the maximum I can set on this processor?
Is there any way to tell or calculate it?

Question still stands, WHAT dosbox version are you using?

How about just trying to turn the cycles up until you notice problems?

You can't damage your PC, as DOSBox is an ordinary software program, nothing special.

I'm using 0.70, I always use the latest version of a program.

Try Moe's hints, or use the default settings of dosbox.