too little, yes, too much is just wasting time. Dry sand won't compact as well, or is less noticable IMHO as the top never compacts well, damp sand works best, I usually compact until when you walk on it, it barely leaves an imprint. Compacting in lifts is best if you have a lot of fill, but typically you're filling 4"-6" and doing it at once is fine for that thickness.
