Distilled water is vastly better than tapwater, BUT you really only need it for a reef tank. If you want a FISH tank, then tapwater is fine.
Liverock means you need much better lights =$$$
A skimmer is what you really need more than anything else if you want a fishtank.
You are going to have your hands full with a bunch of fish in a 20. I think that avoiding the "reef" stuff is a good idea for awhile, since you have much to learn and will make mistakes. Mistakes=$ in a fish tank, but mean $$$$$ in a reeftank, and to complicate things, the reef stuff will limit your options when those problems arise.
Lots of people dive right in with a small reef tank on their first saltwater attempt. Lots of people also fail miserably. Plenty more do just fine, too. It's not just a matter of maintenance, but a matter of understanding. THAT is what makes all the difference. If you don't understand rocks and curing and such, then my best advice for you is to avoid them until you do. There's still plenty of stuff to learn and enjoy before you go and complicate things.
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