1. I would use the 0 ppm
distilled water, it will save you a lot of headache when it comes to the many nuisance algae that can spring up from tap water.
2. Sand and rock-No
3. Live rock doesn't need special light, but I would use a 10K bulb over a 6500K one. The 6500K will grow algae you don't want and it will give the tank a yellowish hue. The 10K will give it a nice crisp white color.
What size tank were you looking to do and are you going to try and do a reef down the line?
Hope this helps!