To answer "what kind of sand?"...I went to a stone/masonry place, where they had literally DOZENS of types of sand. I explained what I was looking for, sand as a litter, as well as for grit, and not wanting too much dust, and they recommended "all-purpose" sand. The size of the grains is everything from play sand to 1/4" pebbles, and it has worked very well.
Having said that, I live in Upstate New York, and while the sand was an excellent choice for the warm weather (it keeps very cool), it seemed a poor choice for winter for the same reason. So, I have put shavings on top for their feeties throughout the winter. In spring, I will shovel it all out (there is only an inch or two of sand left, as much of it gets picked up with the poop and removed from the coop), clean, and put down 22 more bags of sand (my floor space is about 8' x 9').
This is my first year with Chickens, but I think that will be my yearly routine.