well first, so you know...many people here (including myself) think that live sand is just a gimmick to sell sand for more than regular price...because especially this stuff...when its sitting on the shelf for who knows how long, and when the shelves are often not optimal temps to keep the stuff alive (i'm in az...i'd hate to feal the shelves in minnesota lol..jk its prolly not much dif in the stores).
So my point is, by the time you get it in your tank, you're gonna have lots of die off...which will cause amonia/nitrates/whatever...thats whats feeding the algae on the sand. Test for nitrates phosphates (and might as well test nitrites too) and phosphates... Test at night tho, cuz the algae releases nutrients after the lights are off for a while...so you may get a reading of less than there really is dureing the day.
But also, with any live sand, when you stir it up, you're generally gonna get a bit of a spike in a couple things...i'd just think it'd be higher w/this stuff.
But last, how old is the tank? I'm guessing its very new since you just added sand? If so, i'd completely expect this algae outbreak (and a few more down the road too) cuz they're common in new tanks. So it may not be related to the sand at all...but just keep your nitrate and stuff down so that you know you dont have a problem.
Anyways, on how to get rid of it...cerith snails have worked wonders for me. They love the brown (diatom i'm assuming is what you got if its a new tank) algae in the sand and they pretty much demolished the stuff in my tank. Also, if your tank is cycled, maybe a diamond goby...but they're kinda big (just kinda) and they can shift the rocks around cuz they burrow...so be carefull w/them
hth