Your Priority:
Diseases up ->
Runes Open and not RP Capped -> Death Strike
RP Capped and not going to get pancaked for not DSing -> Rune Strike
Try at all times to keep 1 and only 1 blood rune activated so that your RE procs from Rune Strike are granting you back Death Strike Worthy Runes.
Also, you will need to time when to Bone Shield as it costs a "Death Strike Rune". Blood Tap is nice for that.
My blood spec Is a pretty common Blood Spec. My Glyphs, are probably debatable,but I prefer the DS glyph to the HS glyph, especially since I tend to pool my RP a little more than most DK's I've run across. The difference, in the hits is noticable, and both are pure damage glyphs.
While Leveling, especially in outland, Diseases aren't really worth it, but it's a bad habit to get into. (not using them). I know that I am currently tanking along on an alt DK with just DnD + BB + DS on trash, and only bothering with diseases on bosses, but you have to remember to break that habit.
At low levels, you will scream because you don't have a Taunt for another 5 levels, so if people get stupid, you will have to out threat them the old fashioned way. (shouldn't be hard).
I highly recommend getting a few addons.
A good disease timer
A good rune addon
And a Blood Shield Tracker
Learning how to time BLood Shields will take you from being a good tank, to a god. A good Rune addon (I prefer Runewatch, used on Compact mode) for my rune / RP / Disease management. And I believe the blood shield tracker I use is simply called "Blood Shield Tracker" or something else rather generic.
Another tip. I'm not sure how you have your hotkeys mapped on your paladin for CD's, but I find that my some of my CD's end up on more "common" buttons than I had on Shoju, probably because I have so many Cooldowns.
Looking over your spec, I would have put the points you have in Abom's Might into improved tap, and don't forget to pick up Blood Parasites. You can drop a point from Scent of blood. 2 points is really all you need.