A couple rules clarifications?

[Mechphisto]

Hi, all. Just got the basic Munchkin (2010)! Reading through the rules, I'm confused about a couple of things I hope someone can clear up for me...

1. When a character dies, the rules say to lay out all your cards except active race and class (indicating your new character will start looking like your old one), to let the other players loot from you. Then discard all the rest.
Then it says when it's your next turn and you draw your 4 and 4, you can play any class and race cards.
Now, since you can play any class and race cards on your turn anyway, is this implying that your last race and class cards were discarded after the looting with everything else?

2. In the combat example in the rules, one of the cards the warrior discarded during Berzerk was a wandering monster card. I thought no card can be discarded from your hand. Does that mean he'd had the wandering monster card "in play" on the table (but turned sideways)?
Or can you discard anything from your hand?

Thanks for any help! :)