Palossand is actually a pretty neat Pokemon. Its uncommon Ground/Ghost dual typing gives it useful set of resistances and three great immunities. And to compliment that, it has decent defensive stats and a good support movepool, including arguably the best recovery move in the game Shore Up (which is also a signature move).
However, Palossand is limited in what it can do. Its stats aren’t anything exceptional, being outclassed by many other Ground types like Hippowdon. Its abilities in Water Compression and Sand Veil, while good flavor wise, are completely unviable. Sand Veil is inconsistent and for Water Compression, Water attacks are much frequently special than physical, making it unlikely Palossand survives and even if it does, the Defense boosts are useless. It is also hindered by multiple common weaknesses like Grass and Ice.
Palossand did get some buffs in SS, primarily the addition of Scorching Sands to its movepool. This Ground-type Scald further boosts Palossand’s ability as a physical wall by inflicting burn. In conclusion, Palossand is a reasonable support Pokemon and wall in the lower tiers. It would greatly benefit from a buff to its abilities (like getting Sand Stream or updating Water Compaction to give a Water resistance).
Wall of Sand (Bulky Support Set)
Ability: Water Compression
Item: Leftovers
EVs: 252 HP/ 252 Def/ 4 SpDef OR 252 HP/4 Def/ 252 SpDef OR 252 HP/ 128 Def/ 128 SpDef
Nature: Bold or Calm
-Stealth Rocks
-Shore Up
-Scorching Sands
-Shadow Ball/Toxic/Sandstorm
This is the standard Palossand set, and definitely its best set. Customize your defenses as you need to. Shore Up is a must have, allowing Palossand to stay healthy. Scorching Sands helps against potential Knock Off users by threatening burn while also keeping Palossand from being totally passive. I know some people prefer Earth Power, but Scorching Sands has a better secondary effect. The last slot is dependent on general team needs. Shadow Ball allows Palossand to scare some Flying types and Levitate Pokemon, while Toxic hits a wider range of threats but is blocked by Taunt. Sandstorm has use to boost the recovery of Shore Up as well as potential support teammates if your primary Sandstorm setter (i.e. Gigalith) is down. In this case, it may be more appropriate to swap Leftovers for a Smooth Rock.
Sandy Spitfire (Specially Offensive)
Ability: Water Compaction
Item: Choice Specs
EVs: 252 HP/ 4 Def/ 252 SpAtt
Nature: Modest
-Earth Power/Scorching Sands
-Shadow Ball
-Giga Drain/Energy Ball
-Shore Up/Ancient Power
Palossand actually has a solid 100 base Sp. Attack (same as Dragapault) and a usable movepool that can let it run an offensive set. Earth Power/Scorching Sands and Shadow Ball are mandatory STAB. Giga Drain provides some recovery while also hitting bulky Water types. Energy Ball is an alternative that hits a little harder. Shore Up is such a good move that it can even be used on an offensive set. Since Palossand is not fast and relies on tanking hits to be threatening, a recovery move has some use. Otherwise, Ancient Power is its best options against specific Flying types (particularly Normal/Flying types) but doesn’t offer much beyond that.