The way I've done it is to put the (washed) sand in a tupperware or bucket and wet it down thoroughly with tank water. Then, put a few handfuls in a plastic bag (like, a gallon ziplock), but don't close the bag. Lower the bag into the tank, letting tank water in, and position it where you want the sand. Then turn the bag open end down and let the sand out. Doing it this way pretty much totally avoids sandstorms or other issues.
Even if some critters CAN live without sand, personally, I think it's kinda fun to watch them live in the sand. That said I don't really like full edge to edge sandbeds - my ideal setup is a mostly barebottom tank with some sand mounded around some of the rockwork. This lets you keep creatures that need or like sand, it lets you see them interact with sand, but you're getting the cleanliness advantage of a barebottom for most of the tank.