I have seen the fine play sand used in a tank and it can work great. It looks very unnatural and gets very dark and ends up looking like mud from far away. That I just my opinion. Going with play sand is a cheap alternative to getting reef sand.
As I understand it you already have the 120 gallon tank. Please do not take offense but going with a smaller tank and using higher quality sand, rock, and equipment is going to be best in the long run.
Keep in mind I have no actual experience with the play sand, I have only witnessed successful tanks using it.
The sand I bought for my tank was just dry reef sand, I remember it being pretty cheap, although I only needed two bags for my tank.
Try first by asking local reefers for sand, sometimes you can get buckets for really cheap.
You could always do a bare-bottom reef, those can be really neat looking.