If the paper 2 is the one which can be replaced by coursework, then I'm assuming that paper 1 is the one I'm doing. Essentially you have to know all of the grammar points and a fair amount of vocabulary. I'm not sure how you'd go about learning the right stuff though, as we were told the correct vocabulary to learn by my teacher. I did a practise version of it, and I have to say, it isn't something you can avoid revising for.
As for literature, I'm doing Druids by Caesar and Virgil's Aeneid Book IV. They don't look too bothersome, really, it's just a matter of learning the stories in English, and getting a rough idea of where all of the plot points occur.