I finally got this working and decided to writeup the steps that I followed in case it can help others. I am running Windows 7 64bit:
1. Buy Blood here: http://www.gog.com/en/gamecard/one_unit_whole_blood
2. Get the launcher through McTecman (http://blood.nanoaugur.net), a
torrent for it is located here:
http://alluvion.org/download.php?info_hash=c9699e42978fb9d0cc528d13c5...
3. Install the GOG One unit whole blood" game onto your computer
4. Once you finish downloading the launcher, follow the launcher
install instructions located here: http://www.nanoaugur.net/blood/install.txt
5. Now keep in mind that if you want to change your controls, you need
to edit the \Blood\blood.cfg file and then copy that to every mod
directory to apply it to each mod (unless you dont care about
the mods).
6. Smile!
7. Assuming that you did all of that shit correctly run the "One unit
whole blood.exe" launcher and then test out the single player links to
make sure that your mouse/graphics/settings are where you want them.
8. Once the single player games works perfectly go into the launcher
again and then click on YANG up by host/join
9. Skip the easy setup and get to the main application window with the
list of servers (I can't backtrack to this point for my instructions).
10. Click settings, source ports. Then choose the DOSBox tab, click "I
have dosbox", then click "locate" and point it to: \
\yourBLOODlauncherdirectory\Games\dosbox.exe
11. Click "Use the following config" and then click "locate" and point
it to: \\yourBLOODlauncherdirectory\Games\dosboxBlood.conf
12. Click the Blood tab on the top, check the "DOS One Whole Unit" box
at the bottom of the list, point it to: \\yourBLOODlauncherdirectory
\Games\Blood\BLOOD.EXE
13. The user maps directory should be: \\yourBLOODlauncherdirectory
\Games\Blood\MAPS
14. Click OK at the bottom
15. Click settings/multiplayer and networking, change your nicknames.
16. Now make sure that you can launch a single player game through
Yang, it actually runs a bit different than the launcher but should
work perfectly. Do this within YANG by clicking Action/single player.
If that runs perfectly you are done.
17. If you would like to host a game, select Action/create a room and
then the rest is pretty straight forward.
18. Add me on steam and I will play the olden games with you (Scythik).
None of this would be possible without the absolutely awesome launcher from McTecman, he is my new hero.

New version of the launcher from McTecman: http://www.nanoaugur.net/blood/One_Unit_Whole_Mods_Patch_0.9.4.rar

6. NOW, within your blood directory run the "Graphic mode setup.exe" I
have DDraw selected, choose whatever you want but that worked the best
for me.
This is actually kind of wrong, since you claim in 11 to use ...\Games\dosboxBlood.conf, whereas Graphic mode setup.exe in /Games/Blood will change the settings for the .conf file within /Games/Blood and NOT the one in /Games - that's the one that the launcher uses. They're separate files! The first is the one that comes with the gog.com version of the game, the second is the one used by the launcher. :P
If you go under Configs & Maps in the launcher, you can see that the renderer options can be, and should be, set there (upper left corner), and you therefore don't need to use the gog.com tool. The only problem in this case would be if the .conf file has been altered to shift the position of lines... right now it's set to read the x'th line and change accordingly... I need to rewrite portions of the code so it will automatically find the corresponding data, and NOT have another "hey custom maps don't work because the code says line 10 and the file has it saved under line 7" catastrophe. (I am dumb)
Otherwise, fantastic writeup!

Ok, then ignore step 6 :D
Thank you sir of sirs
I also forgot to mention that people might need to open ports that YANG uses on their router. I don't have access to the launcher right now, but the ports within YANG are located under settings/multiplayer and networking.