This topic is covered pretty well in talkorigins.org. Basically, the AIG people seriously distort the findings and what they indicate. No "fresh" dinosaur bone has been found with blood inside. Rather, incompletely permineralised fossil bones have been found, and when chemically processed, structures have been recovered that resemble minute remnants of soft tissue and such. To my knowledge, no intact proteins have yet been recovered from the material.
Unfortunately, popular press reports like the New Scientist one you linked to often have given the false impression that the material was "fresh" when found and practically had red blood dripping out of it. That is simply not the case.
Here are the talkorigins links:
Dino Blood and the Young EarthDino Blood ReduxAncient Molecules and Modern Myths