ROTFL... Alex... your attitude towards living creatures never seems to amaze me. Have you ever asked yourself why you're in this hobby in the first place? Just something to think about. Wouldn't it be smarter just to donate the little bugger to Pet/Co/Smart or something? Or find someone on WAMAS who collects Damsels. (i.e. Sachin)
As far as the sand, if it fizzes it's a good calcium-based (aragonite) sand, that will help with pH buffering. If it doesnt fizz, it's probably pure quartz, or silica-based which is pretty innert, and it's not gonna give you the desired DSB benefits. Still, not a huge deal. It would be a good idea to seed your 'new' sand with some 'old' sand from an established reef. The sand storm is normal. Normally lasts 3-4 days. You can crank up the skimmer to speed things up, and run a canister filter. Just be sure not to introduce fish until it clears. Otherwise they will get stressed and probably develop ick and die. Where did you find the sand anyway? Shouldn't hurt anything once it clears up. Do you have any books on Reef keeping? read, read, read... and stop wasting fish!
-Rob