The reason cc is bad is because it is really good at storing garbage... that's basically the only thing cc does for you. Over time, you'll notice it kick up dust anytime there's surface movement. If you ever wanted to move your tank, you'd be likely guaranteeing the deaths of most of your fish, because as the cc moves, all the garbage it has collected will resurface and cause an ammonia spike.
Live sand is much better because it absorbs the detritus, and does an excellent job of filtering out the ammonia and nitrites. It also houses a lot of great detritus-eating pods and provides food for sand-sifting animals. Also, if you have cc, you can't put any sand sifting gobies in there otherwise they will die. You can't put any sand sifting starfish in there because they won't know what to do with the cc and they'll die.
Ok, now that you've had the history lesson, here's what I would do...
I would transfer all the live rock and animals to a bucket or something... just make sure there's swimming room and that all your live rock is fully submerged. Also, make sure you put a powerhead and heater in there because they'll need both. You should have a spare heater lying around when you do water changes anyway, because you can't put 65 degree clean water in an 80 degree tank. The sudden change in tank temp could shock the fish and kill them. Also, it's always good to have a spare powerhead lying around... you could get a cheap one from your LFS... I have a little $12 one that I use. I just throw it in there for some water flow and add the heater to keep them nice and warm.
the next thing I would do is take out the remaining tank water and KEEP the water... don't dump it.
Take out all your cc and replace it with live sand... the kind of live sand that comes in thick plastic bags filled with water.
Put everything back in.
You may or may not have an ammonia spike, but if you do, it will be very small. I have done this exact procedure with my daughters used 14gallon biocube and I didn't have any problems whatsoever. I think if the only thing you change is the sand, you'll be alright... hopefully your live rock will absorb whatever die-off that comes from the live sand... because it comes live, I don't think there will be much, which is what gave me the confidence to do it, and what gives me even more confidence to post this advice.
Hope this helps!