set with pearls: adorned with a setting of pearls. In the image below, Queen Elizabeth's dress is "set with pearls."
down sleeves, side sleeves: I think that in the image of Jane Seymour the "down sleeves" extend from the elbows to the wrists (note that they have cuts which reveal three swags of the inner sleeve). And I believe that in the same portrait the "side sleeves" extend from just under the arms to the elbows.
skirts, round underborne with a bluish tinsel: Tinsel was "a rich material of silk or wool interwoven with gold or silver thread" (Oxford English Dictionary). I don't know what "round underborne" means, or even what "skirts" are being referred towhether they are petticoats or the ruffled cuffs of the inner sleeve.
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