In my opinion, it's fine as long as both partners are comfy. This may be tmi... but we just double up a burgundy towel over the sheets and proceed as usual.
MORE INFO --> Check out this health info about increased risk of STD, infection, etc. I've never had any trouble, but you should be aware and make an informed decision.
http://std.about.com/od/riskfactorsforstds/f/Does-Period-Sex-Increase-STD-Risk.htm
Answered Nov 13, 2011
Edited Nov 14, 2011