Hi Dayth,
Glad you found us!

Yes, I'm afraid the 40 is too small for the Kole, with our without LR/LS. Though the Kole is one of the smaller Tangs, they do require more swimming room. Most recommend at least a 75 gal. for any Tang. That Foxface is going to get fairly large as well.
Great fish for a tank this size are Percula or Ocellaris Clowns; Gobies; Blennies; Grammas and Firefish.
Scott Michels' Reef Fishes is an excellent book for fish info.
Robert Fenner's
The Conscientious Marine Aquarist has a lot of info on suitable reef fish as well as comprehensive info for setting up and maintaining your aquarium.
Adding LR to a tank usually causes at least a small Ammonia spike and sometimes a new cycle with large amounts of rock or rock that hasn't been fully cured. It's a good idea to keep the rock in Rubbermaid tubs, with saltwater circulated and heated to your your tank conditions, for a week or two until there are no traces of Ammonia or Nitrites in the water.
You can add sand; Aragonite; Southdown Play Sand; etc., and spread a couple pounds of Live Sand on top to seed the bed.
Here are some excellent sites with info on LR and LS:
http://www.rshimek.com/reef/sediment.htm http://www.reefkeepers.org/faq/cache/33.html
Again, welcome!
Dick
