Let me see if I can handle everyone at the same time here...
The sand was dry sand with 200 lbs of cured live rock out of a friend's tank. The nitrites were minimal and my LFS tested the water. I did take some filter media out of my reef and put it in the sump of the new tank. Damsels usually live through everything, generally it takes something substantial to kill them off... IF I THOUGH THE FISH WERE GOING TO DIE, I WOULD NOT HAVE PUT THEM IN! Haing seen a spike in levels and then them come down to zero, (ammonia - 0, nitrite - 0, nitrate - 10) I wanted to slowly add a few fish to start generating more bacteria. 3 damsels in approx 280 gallons of water should have lived... I mentioned my experience cause I do have a clue, people put damsels in within a few days of setting up a tank to help the cycle process. I failed to mention that I had done two 25% water changes about a week apart. I have done alot of reading!
The tank is ready enough after a month and an obvious cycle period, for three damsels to live, and they have not, now please give me suggestion on other things to check for that I am missing. Yes, I am saying that you are all wrong that the tank is not ready, there is something amiss. The next damsel goes in on January 14, so if you want it to live, as I do, I need some real ideas people.
UV sterilizer goes on line today and I'll have an alkiline reading later today as well. I am having the water tested at LFS later again and will have the results for you.