Rainwater is best. House water no, especially if it's been treated with salt, NaCl, for soft water. Reverse osmosis water would be OK. Your untreated well water would be OK if the pH is below 7, most isn't.

Spaghnum peat moss would be a better soil amendment than oak leaves. But some composted leaves would work as part of the additional organic matter.

My favorite blueberry is Sweetcrisp. Low chill, very sweet and crunchy. Star is pretty good for an early berry. Southmoon or Legacy for later fruit.

Misty will self pollinate but you will have better results if you have a couple more varieties. I would recommend Sunshine Blue in addition to the varieties Fruitnut recommended. Sunshine will tolerate higher ph than most other southern high bush and are very easy to grow. Misty is a finicky variety. You will have to severly thin fruitbuds every winter or the plant will die due to blight.

nico_girl3, For what it is worth, the Santa Clara Chapter of the CA Master Gardeners did a blueberry test. Here are a few of their links:
http://www.mastergardeners.org/http%3A/%252Fwww.mastergardeners.org/mercury/jan2011column.html
http://www.mastergardeners.org/picks/bluevar.html
http://www.mastergardeners.org/picks/blueberry.html
Most recommendations I have seen for in ground blueberries suggest you need a bit of time to get your soil pH dropped. I grow all mine in pots. So, I do not have any direct experience with getting soil pH down. Here is a great link discussing that:
http://ir.library.oregonstate.edu/xmlui/bitstream/handle/1957/12202/ec1304.pdf?sequence=1

Good luck with your garden!

First, you need to know your current soil pH. The sulphur in the water is fine unless your soil is already very low in pH (Oak leaves are good, but they will decompose very quickly. Ideally, you want a loose, well-drained soil with high organic content for blueberries. If the soil is heavy, addition of sand helps. Peat will lighten the soil and increase the organic content, but will break down much slower than the oak leaves.

Thank you for all the info. I'm looking into ordering some peat before I start planting. I'll have to see where to get my soil tested. I'll have to shop around for some other varieties of blueberries. Thanks again.