Sacred
  
PC
  

Start the game using the  command line parameter /cheats=1.
  The easiest way to do this is by right-clicking on the desktop shortcut to
  the game, choosing 'Properties', then adding /cheats=1 to
  the end of the 'Target' Field. 
Now during play, press ~ to bring up the console and enter sys cheats
    963 to activate cheat mode. Now enter any of the following at
the console during play.
    

Turn blood back on:

Open the settings.cfg file using notepad. Change "Violence=2" to "Violence=1". Save, then start the game.

Thanks to Revolution readers Warren, dUKE and Motorman!