First you posted this:

> I just installed OpenSolaris 2008.05

Now you state this:

> I installed the Solaris Express CE

The two are *not* the same.  If you have Solaris Express CE installed, as your 
partial listing
of /usr/bin indicates, then there is no pkg utility.  If you wish to upgrade 
the system after the
next release of SXCE, then you use live upgrade.

> Should I have tried something else?

Depends on what you want.  SXCE is more complete than OpenSolaris since it has 
a reasonably
complete development environment, more services and StarOffice 8.  SXCE also 
requires 
considerably more disk space than OpenSolaris.
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