if vlookup yields no results then try another vlookup

I need some help with some nested formulas. I've got too many nests and I'm mixing them up.

So in the attached data sheet you'll see three chunks of data. I've simplified this dramatically from what I'm actually working with.

Goal -
If item from data set 1 is in either column 1 or 2 of "compared with this data set" then return "true" in to "data set evaluated" area
if item from data set 1 is not in EITHER column 1 or column 2 of "compared with this data set" then return value "false" in to "data set evaluated" area
additionally the tables I'm working in from data set 1 come in varying length in terms of number of rows. If there are fewer rows in data set 1 then I just want the cell to be blank (I don't a big "N/A" error there)

I tried several different if(iserror(isblank(vlookup(vlookup)))) combinations - not in that specific order - to yield a result with no luck.

Thanks in advance!