Sphagnum peat moss is purchased dried so yes, what you are seeing the in the store is what you should use.

You said you have researched growing blueberries in Colorado but just in case you'd like some additional information here is an excerpt from an answer about growing blueberries in Colorado:

"You should be OK with any Northern Highbush-types, as long as they are hardy to USDA Zone 5. I have personally had very good success with 'Elizabeth', 'Reka', 'Blueray', 'Bluegold' and 'Elliot'. Many Colorado gardeners have long lamented their inability to grow blueberries. The problem stems from the fact that most of Colorado’s soils are slightly to highly alkaline. This means that their pH value is somewhere above 7.0 (neutral). Blueberries and their relatives, such as rhododendrons and azaleas, must have acid soils in order to thrive. For instance, blueberries prefer a soil pH of about 5.5. Unfortunately, there is just no practical way to manage Colorado soils in order to produce a pH that low. The good news for blueberry lovers is that, with a little extra effort, there is a way to grow delicious blueberries in your Colorado garden. The key to success is to plant the blueberry bushes in a medium that is primarily (or entirely) composed of sphagnum peat moss. This readily available material has a pH of approximately 5.5, so it is perfect for blueberries. Two further keys to success are: 1) make sure that the root zone always stays moist (even during warm, dry spells in winter), and 2) protect the bushes from dry, desiccating winds during the winter. This can be done by wrapping the bushes with burlap or old sheets while they are dormant. Any planting method that incorporates these three key elements should lead to success, so feel free to be creative. For those who want an established recipe for success, follow the instructions below. Keep in mind that you will need to have at least two blueberry plants of different varieties (for cross-pollination purposes) in order for the plants to set good crops. For each plant: - Dig a hole that is 20” deep, 30”long and 20” wide. - Get a plastic-wrapped bale of sphagnum peat moss (3 cubic feet). - Punch about a dozen holes in the bottom of the plastic wrap. - Drop the bale, holes down, into your pre-dug hole. - Cut an 8”x 8” “X” in the plastic on top of the bale and fold back flaps. - Plant a bare-root blueberry plant directly into the peat moss (Do this in early-mid April). - Re-close the “X” using tape, leaving about a 3” hole in the middle to accommodate the trunk of the bush. - (optional) Install drip irrigation line by cutting a small hole at either end of the bale and feeding the line through the holes, resulting in an irrigation line that runs on top of the peat but under the plastic. - Fertilize in early May and early July with a balanced fertilizer for acid-loving plants (i.e. Miracle Grow for Acid Loving Plants)"