You are correct - a lot of folks have been using the play sand as a base for thier tank. I would suggest that you use this site and buy 45 lbs of live sand and integrate both sources in the tank. This will give you the cool critters in the live sand at a lower price.
A good reef/marine fish tank should have about 3-4 inches of sand at the bottom. this helps create a dentirfication layer where nitrates become a bit less of a problem.