I've done it with my fish in the tank but they were incredibly stressed, I wouldn't do it again. I agree that it's best to net them and move them into bucket or even storage boxes - with discus a storage box will be better than a cramped bucket.
Once you've got your fish moved out switch off your filter and heater - if you leave the filter running you risk getting sand in the impeller housing and that will destroy the filter entirely.
It'll probably be easier to remove 50% of the tank water than trying to work with a full tank. Have your sand washed and ready - you must wash the sand, even if it is aquarium sand. It removes the dust. If you are using playsand you'll be shocked at how filthy and dusty it is. I can give you tips on washing sand later on if you want.
Okay so now you have your sand washed and ready so it's time to remove the gravel. I've found the best way to do this is to use your net and a colunder, have the colunder (and I've just realised your in the U.S and might not know what one is - it's what you use to drain vegetable a round bowl with holes in) over a bucket and scoop the gravel into it. Once it's full tip the colunder into another bucket. Keep going until you've got as much of the gravel out as you can. Then get a hose or length of pipe and suck up the debris from the base of the tank into another bucket and throw this away - it will be brown and gunky.
You can return the sand in the same manor as you removed the gravel - go slow, sand weighs more when wet than you'd think and it's easy to crack your tank bottom if you just dump it in.
Once you've got your sand in you can re-add plants and decor and add back as much of the old water as you can. By removing your gravel you will lose lots of bacteria and so by returning most of the old water you add some back - it's only tiny amounts though so for at least a week keep an eye on your ammonia and nitrite levels.
Once the tank is filled back up you can set the heater and filter running again. It'll be cloudy for a day or two maybe (depends on how well you washed the sand and how much debris was under the gravel) If you are able to add some fine filter floss to your filter I would consider it as it will help to clear things up.
The fish can go back in even if it's cloudy. They will be stressed so keep the lights off until they chill out again. Feed lightly for the next few days and keep an eye on the water stats.
You'll need to set aside a full day for this. It's a big job and not one to be rushed. Give me a shout if you want tips on washing the sand