It reverts itself to 320x240 despite i having chosen 1920x1200 in the graphic mode setup. Choosing 1280x1024 in the game just make the game jump out to the desktop and clicking the game again it resides to window mode.

How do i run Blood 1 in the latter resolution?

- - -

The game wasn't really designed to run at such high resolutions. I know it gives you the option, but it won't work. And the fact that you're running it on an emulator makes it even more difficult.

Try 800x600, that should give you good enough graphics for a Build Engine game.

This patch: http://dege.fw.hu/temp/Blood2ResPatch.zip seems to fix all of blood 2s resolution ailments.

EDIT:

Forehead slap due to not noticing the OP's Blood 1 clarification.