Where did you get the LR from?
More than likely the tank DEFINITELY still needs to cycle, but if you bought LR that was already in an established aquarium, it could contain all the necessary bacteria you need (Nitrosomas). So beware of that, and test regularly to see how fast your ammoinia levels come back to normal. If they level off quickly and then there is no presence of nitrite, most likely your good to go! If your trites start kicking in while there is still presence of ammonia, then...well, patience is now key young jedi...
Per Rens comment on the LS: 4 inches is highly reccomended if your goal is to develop additional bacteria to break down Nitrates. This bacteria needs an oxygen free environment which you can only get with A DSB.
I personaly only have about 2.5 inches of LS and so far my trates have remained undetectable, but the load is light-moderate. I am experimenting to see how thin a layer can be used while keeping trates under control...more than likely I'll need to go deeper.
HTH
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