Well, it would help us to find more info about what you're starting with:

First, scoop some of the soil into a jar, then fill with water. Shake it up and let it settle. It will separate into it's components. Give us an estimate of how much sand, silt, clay, and organic matter make up the soil.

Second, find out how well it drains. Dig a hole at least a foot deep. Fill with water. Tell us how long it takes to drain.

Third, is this a sunny or shady area? What side of the house is it on (N,S,E, or W)?

Definetly get a soil test from your local county extension agency. It would help if you had an idea ( by visiting garden centers now ) what you want to place there so before you start amending the soil you can add what your future plant resident will appreciate most. Some soil tests ( can ) take up to 4 weeks to get back ( at least in my area :-( so now is the time to start so you can plant before it gets to hot ). When you get your soil test back you should be able to request recommendations for organic fertilizers if you want to do that. Keep in mind they take longer to interact with the soil and have nutrients available.

I would leave the existing soil alone unless there was a drainage problem, chemical spill, or pure rock. Barring that, I would visit Starbucks every day for the next several days and get as much coffee as you can get. Use it as a mulch on top of the soil. Keep it moist (not wet) for three weeks and then reevaluate. Dig through the mulch and see if the underlying soil is still cracked.

When you find that the soil is starting to look pretty good, pick out your plants and plant them. Don't till the soil or do anything crazy. Then cover the coffee grounds with a heavier mulch or stone that you like the look of and sit back.

And in case you are thinking I left out the part about the soil test, I just don't do soil tests. The only thing they tell you for certain is to add organic matter. That's what the coffee grounds are doing for you.

Oh, and coffee grounds are not acidic. Coffee drink is, but the grounds are not. All the acids got washed out by the boiling hot water.

You need not replace the soil that is there, but you probably will need to add something to it. Start by contacting you local office of the University of Kentucky USDA Cooperative Extension Service and inquire about having a good, reliable soil test done for base nutrient load and soil pH levels. Then dig into that area with these simple tests to see what you do have;
1) Structure. From that soil sample put enough of the rest to make a 4 inch level in a clear 1 quart jar, with a tight fitting lid. Fill that jar with water and replace the lid, tightly. Shake the jar vigorously and then let it stand for 24 hours. Your soil will settle out according to soil particle size and weight. A good loam will have about 1-3/4 inch (about 45%) of sand on the bottom. about 1 inch (about 25%) of silt next, about 1 inch (25%) of clay above that, and about 1/4 inch (about 5%) of organic matter on the top.

2) Drainage. Dig a hole 1 foot square and 1 foot deep and fill that with water. After that water drains away refill the hole with more water and time how long it takes that to drain away. Anything less than 2 hours and your soil drains too quickly and needs more organic matter to slow that drainage down. Anything over 6 hours and the soil drains too slowly and needs lots of organic matter to speed it up.

3) Tilth. Take a handful of your slightly damp soil and squeeze it tightly. When the pressure is released the soil should hold together in that clump, but when poked with a finger that clump should fall apart.

4) Smell. What does your soil smell like? A pleasant, rich earthy odor? Putrid, offensive, repugnant odor? The more organic matter in your soil the more active the soil bacteria will be and the nicer you soil will smell.

5) Life. How many earthworms per shovel full were there? 5 or more indicates a pretty healthy soil. Fewer than 5, according to the Natural Resources Conservation Service, indicates a soil that is not healthy.
The information you gather from these tests will help guide you in what you need to do to make your soil good, and healthy so it will grow strong and healthy plants

Here is a link that might be useful: University of Kentucky CES

Take all the rocks and tarp off the area. That soil didn't do anything to you- it just needs some help. The best soil in the world contains some of what you have, and some other stuff (and that all depends on what you want to grow).

kimmsr gives some good advice on assessing what your soil is, and what it needs. Tell us about what you want to grow there. A lasagna garden or mass amendment with compost is a standard cure-all- but that depends on what you want that soil to do.

Hi again! Thanks for the time and advice that you each have devoted! I did take a sample of soil yesterday as suggested. Right now, the composition is about 45% sand, 25% silt, 25-30% clay and a very, very small layer of matter on top. From what you say, it doesn't sound too far off, but I wonder if the clay amount would be a problem?

As far as my picks for planting, I simply wanted to put some sort of Boxwood and/or Euonymus in, with a few flowering plants that will hold up well with them. That area gets full sun for about 6-8 hours a day during spring and summer, as it is angled on the west side of the house.

I'll have more information soon, but wanted to post what I knew now. I really appreciate the help. It's so important to me to take this area from eyesore to a place of beauty, and your help is invaluable to me!

Sandy soil is a good problem to have- it drains well, and that's half the battle. Boost up your organic matter content and you're rockin. Add compost, or try a lasagna bed (see the FAQ's).

I agree with pablo. With that much sand you shouldn't have any drainage problems. The clay is not a problem, it's a good thing! Your 50% Silt/Clay will provide minerals and help retain moisture. Sounds like you mainly just need to dig in some compost. And remember to mulch after you plant!