For some reason, whenever I change anything in the options menu, it works, however it resets whenever I close and reopen the game.

Offtopic:
Does fluid blood lag the game (a LOT), or is my computer just slow? Shaders works fine, it's just fluid blood.

Try deleting default.cfg from the game folder (c: \games\Toribash 3.3)
and then try again setting the options.

If it still doesn't work - which option are you trying to set ?

Thank you, that worked also, is there a way to increase the default screen resolution?

Create a shortcut (or use one that was already there) and in the "Target" box, should be something like this: "CProgram Files\Toribash-3.3\toribash.exe" including the quotes. Add " -width <desired width in pixels> -height <desired height in pixels>" sans the quotes to the end, (hopefully this is obvious) replacing the carats and the text inside with what it suggests.

Thank you!! Is it normal for fluid blood to lag tremendously? It's odd because the game runs very smoothly, at 1600x1200 resolution, with shaders on.

Well, I don't think it causes much of an issue with me, but some of the other settings cause a fair bit of lag. Also, if the blood is right in the camera, it causes a decent slow down for me (well, not that bad really, but it's noticeable).

Thats weird, because with me it slows the game down to what seems like 1 fps, and makes it difficult to get back to the options menu to disable it. Any ideas?

It's fine until someone gets hit.