its a nightmare - I had exactly the same problem yesterday and am rapidly going off solaris...
in any case jayvo - im assuming you have access to the cd's (I needed them).
On one of the software CDs you should find a directory called 'Product' I think.
Under this there should be loads of directories, all preceeded with SUNWxxxxxx, e.g. SUNWgzip (or something like that).
Dont ask me how to copy the directories accross, I got fed up messing around with the syntax and went into CDE to copy/paste

in any case once youve pasted them, do
pkgadd...(then the filename - I did gunzip). I think if you leave it blank it tries to do the lot.
Also, pls check that the SUNWxxxxx files are in the correct place on your hard drive - if they are not, pkgadd will complain (but at least it well tell you the correct place to copy the files.
In any case, gunzip works fine on my machine now..