It's possible to monitor Cisco Blade switches with LMS, but not the blade servers. LMS is not geared toward server management like products such as BMC's blade center manager. CiscoWorks LMS is geared toward managing Cisco network devices, and some voice servers (especially with the CiscoWorks Operations Manager product).
With CiscoWorks LMS, you could add the servers (assuming they support SNMP), but you would only get basic inventory (i.e. mib-2) management from Resource Manager Essentials (and this would count against your licensed number of devices). The CiscoWorks add-on, Health and Utilization Monitor, can do some performance monitoring of non-Cisco devices using standard MIBs as well. HUM comes as a 90-day eval with LMS 3.0.1 and higher.