Install a copy of Solaris x86 in a virtual machine and setup an install-server for your sparc machine. There are lots of good how-to's on doing that (and of course the offical oracle/sun...
You may be lucky, most IDE DVD/CDROM should be OK in the Blade 1500. I think that you will be OK if you just go with CD media, it does look like this is a CDROM and not a DVD as was...
Well, the disk name says that it is SPARC version. You cannot run executables compiled for SPARC on x86. As for the CDE, it is included with Solaris up to version 10 (you can choose CDE in the login...