Phil,
Yes, you should be looking for any hazards out there, but Tim was having a problem looking too close in front of his wheel.
"I knew what I was supposed to do but I didn't realize until you guys pointed it out that in turns I was looking 5 feet in front of me for that next patch of sand."
Unless you're about stopped in the road, there's just no way you're going to have enough time to react when something is 5 feet in front of you if you're going at normal speed. That's not to say you should be looking at the horizon at all times, but when you scan for these sand patches, you have to look farther than 5 feet in front of you. You should be able to spot them before the turn and be able to adjust your speed and line accordingly.
I'm glad to hear Tim is making progress. A riding course is a good tip. Around here, the MSF Experienced Rider Course is $80, but can vary in different areas of the country.