Here is an excerpt from RK mag written by Tom Murphy:
Packaged Live Sand
Shop around for live sand and you will find all sorts of bagged wet sand, with the claim that it contains live bacteria, and is great for deep sand beds. The good news is many are aragonite sands but the downside is the few bacteria added don’t have nearly the biological diversity of a true live sand bed. This packaged material contains a few strains or bacteria, usually nitrifying bacteria, but in no way duplicates the many forms of bacteria found in naturally harvested live sand.
It also lacks the higher organisms that make sand truly live. Organisms like protozoa, copepods, worms, microstarfish and mini sea cucumbers are present in true live sand and help keep the sand bed healthy. It can be argued that many of these organisms will be on the live rock and they will soon seed the sand. Some are present on live rock but it is a different environment than is found in an ocean sand bed and important sand dwelling organisms are not present on the rock. If you want a good deep sand bed then it is important that at least part of it be true live sand and not artificially seeded sand.
http://reefkeeping.com/issues/2009-04/newbie/index.php
And if I look hard enough I can find some info on actual live sand as well... If you want
