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Introductions first, I'm new to WHFB and I decided to pick up Vampire Counts to round out my gaming group. I love the lore behind Vampires in general especially the Blood Dragons lineage. How viable is this list in general? From what I understand, VC armies tend to be more "hero hammery" as a result of relatively weak core and fragile units.

Vampire Lord[451pts]
Shield, Armor of Destiny, Additional Hand Weapon, Lore of Vampires, Barded Nightmare, WL3, Quickblood, Red Fury

Vampire[4x114pts]
Heavy Armour, Shield, Additional Hand Weapon, Lore of Vampires, WL1

19 Skeleton Warriors[4x125pts]
Full Command

2x Spirit Hosts[90pts]

5x Blood Knights[275pts]
Standard Bearer, Champion

Terrorgheist[225pts]

I plan on putting a Vampire in each Skeleton group and running of the board while the Lord with knights and Terrorgheist take flanks.

well thats a ton of vampires....not sure if I would do that you don't need 4 level 1 vampires and a level 3 vamp.

Also the skeleton units are to small. you should probably bring 2 units of 40 each instead. 19 will get demolished quickly.
Blood knights are pretty beast but are expensive. You could always use normal knights and have more of them.

Mounted models gain nothing from extra hand weapons. Swap for lance.
19 skeletons is too small. Combine into blocks of 38, and stick 2 vampires in each one.
Run the terrorghiest up the flank with the general, use the spirit hosts to stall on the other flank. You want the ghiest to be flying 20", and you can't do that unless your near the general.
4 level 1's is just fine, take at least 2 with invocation, and if you get something else useful, consider keeping it.

Blood dragons are pretty cool, used to run them back when there were different bloodlines etc.

Having the lord with the bloodknights could be a tad overkill, but its thematic and you probably won't complain if it rolls over stuff. I would loose the champion on the knights, he's costly and since any of the knights can accept a challenge he isn't needed to protect your lord from that. The most likely thing to happen with him is he'll issue his challenge and either get smashed by and enemy hero or way overkill some other champion. Take a musician instead, the reforms are good to help with their frenzy issues.

For all your vamps, I think they'll struggle to use an extra hand weapon and shield. One needs to go. I would loose the extra hand weapon on your lord and take a magic weapon, I tend to go for extra strength over attacks to punch through armour and high toughness dudes. So maybe the sword of might.

I also think 4 vamps may be a few to many. Its making almost 1/2 your army be tied up in heroes and your lord. But I see you are also trying to balance them out with your core regiments. I'd combine 2 of your skeleton groups into one of 39 and put in a vampire with a battle standard. And keep him on lore of vampires. And I'd replace the other 2 units with 1 unit of 24 crypt ghouls and chuck in a vampire with fencers blades and redfury for a cheapo blender, giving him lore of shadows as well. The skeletons have a low offensive output, so I'd just try and tarpit with them, whereas the ghouls can potentially hit stuff. Also some units of 5 dire wolves would help to screen the blood knights.

You should have a few points left over after that, may be able to get 6 hexwraiths which would work well with your mounted lord.

Thanks for the responses. I've changed the list to:

Vampire Lord[451pts]
Shield, Armor of Destiny, Lance, Lore of Vampires, Barded Nightmare, WL4, Quickblood, Red Fury

Vampire[4x114pts]
Heavy Armour, Shield, Lore of Vampires, WL1

38 Skeleton Warriors[2x220pts]
10x Dire Wolves

11x Black Knights[316pts]
Full Command

Terrorgheist[225pts]

This time, I'll run 2 Vamps per Skeletons with the Lord in a unit of Black Knights. Should I screen with the wolves or flank?

Finally, why is it not a good idea to take 4 heroes? Is it eggs in a basket syndrome? My thought was to add them to the weak core to make them semi-combat effective. As for not taking Crypt Ghouls, it's mostly a stylistic choice as I wanted to match the fluff of Vampire and his loyal undead legion. That and I hate Ghoul models.

Would it work to take 2x lord in a huge block. With a Lord and hero riding around in Knight unit(s)? Something along the lines of this:
Mounted Vampire Lord
2x Vampires
Mounted Vampire
10 Dire Wolves
78 Skeletons
2x7 Black Knights
Terrorgheist