1 Your live rock and live sand are there to provide a lot of the filtration, but many recommend/demand a protein skimmer to finish up the work and remove stuff your bacteria can't get to and can't handle... can be either hang on back or if you decide to have a sump it can go in there. Not really considered filtration so much, but "cleaner crews", shrimp, crabs, and other inverts, are commonly used to recycle leftovers that make it to the bottom. Also of course are the macro algae in the refugium if you have one, or in the tank (or both). Remember though, herbivores like tangs don't give a fish's tail if the macro algae are hard at work making it a better world for them to swim in, they just see lunch.
2.Lighting for a reef or lighting for the non-reef you mentioned you may start with? If you are going to start with Fish only with live rock/ sand (FOWLR), you can get away with lower lights... florescent tubes on a timer even... cause it is all about making it look nice... course the fish do need light as a rhythm cue to keep happy... but not as a food source. When you move into corals and inverts like clams that have algae that live symbiotically with them, you are going to have to move up the food chain of lighting so to speak... ending with hard corals requiring super bright (and expensive) lights (metal halides). Luckily, lighting is usually pretty easy to upgrade as you move along (just expensive), so if money is a factor, get what you need for what you have, and upgrade along the way.
3. Live sand is.. well... sand that crawls out of the tank and beats on your cat in the middle of the night. Unless you have a really tight tank top secured with 1 inch cold iron chains or a baseball bat, I wouldn't recommend it...
Yeah... so... anyway... live sand is sand that is full of more than just crushed coral and minerals. It can have all manner of little microscopic critters runnin around in it.... most importantly of course are the host of bacteria that help your tank denitrify, as well as various other microorganisms. Want a better answer? http://www.reeftectonics.com/livesand.htm
. Basically any sand that is in a cycled aquarium is going to end up "live", especially if you have "live rock". Having it from the beginning just helps to get things going faster.
4. Carefully. No.. honestly.... carefully. Remember, if you set it on the sand, and get fish that burrow, they are going to manically seek out weak spots and topple your rocks. They then sit on top of the newly created mess and look all superior. If they had middle fingers.. well...
Anyway.. there are various adhesives made for aquarium use that bond underwater and can help.. especially in making bridges and such. Make SURE they are nontoxic and safe for aquarium use. Some people will use inert material or larger base rock to create the basic form, then put the liverock on specific points. If you are successful with the reef, it'll all be coated in coralline algae anyway. It is also cheaper than buying all live rock. The key, any way you go, is to put the big stuff at the bottom and try to create bottom heavy shapes... wider at the bottom than at the top. You'll know you're doing it wrong If stacking your rocks reminds you of that episode of the Brady Bunch where the kids are building a house of cards to decide if they are going to buy a tent or an oven with their green stamps and the dog rushes through and... errrrrr... yeah.... you get the idea.
And if you are aquascaping with live rock, keep it wet.
5. If you are planning on going with live rock for the initial set up, the natural die off from some of the organisms in the rock will provide the ammonia kick start. Some use fish food, a nice fresh piece of shrimp, or anything organic. Then just sit back and wait... and wait... and wait... Don't worry... it'll pay off... a stable cycled tank teaches the lesson of patience and slow is always better at all stages of the SW aquarium ride. Just remember to keep your hands and arms inside the car at all times. Test weekly, and watch for the typical cycle stages.. Ammonia spike.. Nitrite spike.. nitrate spike. Once nitrates fall to near or at 0, you should be done. Water changes are done really as needed... watch your levels during cycle. You are going to get spikes.. but too much ammonia or nitrites for too long may actually kill off the bacteria you are trying to get to grow.
Now... I'm quite sure others will swoop in and correct me and augment the above with more detailed info... but that's my contribution.