You can do a fish-in cycle with either live or dry rock. I personally wouldn't recommend either. I would leave a fish-in cycle to the more experienced reefers who can react to any possible cycling issues with the knowledge that only comes with experience.
That being said, there are pros and cons to using live or dry rock in a fish-less cycle.
Using live rock may help to cycle the tank quicker and help it to mature much faster. It MAY also reduce the initial "ugly" stage. The down side is that you have to accept whatever hitchhikers (good and bad) that come with the rock.
If you use dry rock and bottled bacteria, you can also cycle your tank fairly quickly. The down side here being that while you are initially eliminating the introduction of pests, dry rock cycles generally take much longer to reach a stable condition and the "ugly stage" tends to be more pronounced.
Keep in mind that whichever method you choose, unless you have a religious quarantine regimen for all fish, corals and inverts that you intend to add to your tank, you're likely to introduce unwanted organisms to your tank anyway.
I personally think that the initial fish-less cycle period gives the new reefer a chance to become familiar with their tank. It gives them the opportunity become comfortable with the water testing that is vital to this hobby. Don't rush it.
I've attached a couple of great threads that may help.
The Supreme Guide To Setting Up A Saltwater Reef Aquarium Introduction The marine environment is one of the most complex systems on the planet. The aquarium you are about to set up is only a tiny sliver of the vast ocean, but it is nowhere near simple. This task is going to take patience, a...
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Cycling a new aquarium. One of the earliest topics a new aquarium hobbyist needs to learn is how to properly cycle their aquarium. There is a ton of information on this process and many different methods on how to accomplish it. There are many different chemical and biological cycles our tank...
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