Cyano is normally a sign of not enough water movement. I wouldn't waste my money on "live" sand. I would get whatever sand he wants and seed it from your tank. The size of your tank he could get almost half of his sandbed from you. Then replace what he took from you and fill in his other half with new sand in his tank.
As for the water changes from your tank there wouldn't be a benefit. Would be a good way to help him get started by using your "seasoned" water. Depending on what rock you use he may get a mini-cycle but not a full blown cycle. After the tank is up and running however, I don't see a benefit of him doing water changes from your tank water. In essence it wouldn't really be a water change because he wouldn't be using fresh saltwater which has all the trace elements.
Hope to Help.
Eric
Eric