There are a few websites that have excellent compilations of nano-fish for different sized tanks. Just realize that with nano-tanks comes constant chemical level observations!
I love my nanos and find them easier to manage than larger tanks because of the smaller WCs etc but they can turn south in a matter of minutes!
Rocks, depending on what is growing on the rocks, size could change. I would assume if you're not working with coral, find a single piece of rock that has good features and drop it in. If you are going to be fragging corals etc pick several small pieces of rocks so that you can move them easily if you need to frag, change elevation in the tank etc.
You can't really do a DSB in a nano, so I usually just put enough sand in the bottom to cover the bottom and no more. Unless you have a pistol or mantis shrimp, than you don't need more then 1/2 inch or so.
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