Danny is correct:
Red wigglers = small earthworms.
Bloodworms = midge larvae (resemble large mosquito larvae, but bright red).
To confuse matters, some bait shops (and Jeff!) use the word "bloodworms" to mean red wiggler earthworms. All earthworms carry parasites, but they are not harmful. The advantages of live earthworms outweigh any risks, in my opinion.
Fishing stores always sell some kind of earthworms, and they are usually good for newts. It's very rare to find "true" live bloodworms anywhere in the US. Pet stores sell frozen bloodworms in cubes usually.