This claim is pretty popular in the web and obviously cannot be answered by counting grains or stars. Thats what physicists call a Fermi-question. It deals with problems/questions where we dont have at all/enough measurement data to calculate a exact result, but can make a approximation based on plausibility, general knowledge and common sense.
When trying to answer this question give out a approximated number of grains of sand on earth and stars in the universe, the assumptions the approximation is based and the rough error of your approximation so everybody can compare the quality & plausibility of different answers.
PS: the more upvotes this questions gets the more detailed i expect the answers. Remember, we have a nice LaTeX formula renderer here ;)