I'm going to throw in another method for you. It's a little slower, but (IMO) a lot safer.
Put the dead sand in the tank. Put in about three/quarters of the total live rock you want to put in, but use only dead rock (preferably stuff with lots of pores). Reefcleaners had a great deal on some really nice rock. The stuff you want is ancient coral beds that are no longer in the ocean.
Personally, I buy my salt water from the LFS. It's a dollar a gallon and it's cheaper for me than to deal with the fuss of mixing. I mixed my own salt water for about a year and hated every second of it. I never could get the ratio correct and always had to start with half a bucket because I'd have to adjust to the point where I filled the bucket.
Anyway, put in the dead sand, the dead rock, and add salt water. Let everything settle. Then add the live sand, let everything settle. Add the live rock (only about 1/4 of your total rock) and turn on all your equipment. Wait.
You'll have to do something (probably to jump start your cycle), I threw a dead shrimp in the tank and that took care of it. I never had a huge ammonia spike, I never had to 50% water changes to keep my live rock alive. I did have the diatom bloom, but cerith snails took care of that.
There are two advantages to this method. The first is cost, the dead rock is much cheaper than live rock ($2-4 a pound vs $5-9 a pound). The second is control. You have a lot more control of what ends up in the tank. In my first tank, I ended up with two mantis shrimp and a variety of crabs that just didn't belong. With this current tank, the only things in the tank are the things I selected and placed in the tank (except for some calupera that came in, but I can trim it easily enough).
The disadvantages: The first is that it takes time to do this properly. It was 6 weeks before I put my first organism in the tank. The other disadvantage is that looking for and IDing hitchhikers can be quite fun. It depends on what you want to do.
I hope that helps you. This method has worked very well for me and my tank, your mileage may vary.