ha, since more than two years ago there were so many people argued about this, well, as most people believe, i believe sand box effect does exist, but the accurate answer, only google knows.
Don't think so...
I had never met with sandbox, so for me it does't exists, even from last 2 year rarely any website has been put in sandbox, so there might be chances that now sand box doesn't exists.
But if you are talking about new websites ranking good and then getting into sandbox, then its completely wrong. New website are well ranked with the keywords they have in their URL but after sometime its a Google dance you will find. Google takes away these websites way down to go through them. So there is no relation to sandbox and to new websites banned.
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Yes it exists. Google temporarily reduces the page rank of new domains, placing it to "sandbox", to check ways how webies attempt to manipulate Google's page ranking by creating lots of inbound links to new site.