Coffee grounds will do little to improve an ailing blueberry plant. Try posting in the fruit & orchard forum; blueberry advice is commonly given there.

Red is the natural fall leaf color. I have an acidic soil so I can't help ya there. Don't give up on the little guy. BB are very shallow rooted and take time to settle in sometimes.
Mike

Blueberries grow pretty well in the Pacific NW. You might want to assess the light and drainage conditions as much as the soil pH. I have blueberries, too... and love the red fall coloration. The bush that produces heaviest was planted in a mostly shady area of dry neglect, surprisingly. But it is near my compst bin and I think is the beneficiary of some compost "tea" that drains from holes in the bottom of the bin. The others are newer plants, a bit scrawny, but growing well. Don't give up on yours!