Expression Blend has a slightly different tool palette then Visual Studio (it more closely resembles what you'd find in a design tool like Photoshop). 

Blend supports vector graphic editing:

Figure 5

Blend also supports adding and working with controls.  There is a special icon on the Toolbox for layout controls (Grid, Stack, Canvas, Border, ScrollViewer, etc), text controls (TextBox, TextBlock, etc), and an icon that displays the controls you've recently used:

Figure 6

Clicking on the final ">>" icon on the tool palette displays all of the controls that are available to be used:

Figure 7

Make sure to click the "Show All" checkbox in the top-right hand corner of the Asset Library if you don't see the control you are looking for.  You can also use the "search" textbox to filter the controls by name.

Important: Blend supports a design experience for all controls (both the built-in ones as well as any custom control or user control that your application references).

Once you select a control from the toolbox, you can click and drag on the design-surface and draw out the control.  You can also drag controls from the asset tool onto the artboard.  By default you get automatic rules and positioning placement markers when you add and interact with the controls on the design-surface (below is a form with the built-in button, calendar and slider control on it):

Figure 8