A note as to why all the space is taken up: Occasionally, a patch is recalled or needs to be removed and the previous patch left in it's place. This is quite complicated in some flavors of Unix, but with the Software Distributor utilities (swinstall, swremove) and the /var/adm/sw directories, it is quite easy.
rather than be concerned about the space, create another logical volume dedicated just to the products and software that has been installed. Then move everything from /var/adm/sw to the new location and create a new mountpoint as /var/adm/sw.
NOTE: Simply rm'ing the files will terminate your ability to load patches and/or new applications using swinstall! This is not a good situation at all.
Bill Hassell, sysadmin