I think your second question was well answered by the person before me. Your first question can be better answered as "don't layer it." You want your Hugel mounds to contain lots of different things in pockets of goodness, not in even layers. Even layers can lead to the
lasagna effect (which means one "layer" can turn into a sheet that repels
water preventing layers below it from getting water/nutrient flows.)
You want to bury your logs (
wood) with occasional clumps of manure and straw and such scattered across the mound in pockets here and there. As long as you don't do an even layer of any of these things and your wood is completely covered by the soil, you
should be good. Make sure you get a cover crop planted on the mount as soon as possible after creating the mound. You can do an even layer of mulch (straw) on top, but that is a mulch to protect the cover crop and soil.
The pockets of compost/manure/etc keep it from forming a sheet of anaerobic water repellant as already explained, but the other thing they do is add diversity to the soil itself. This means some plants will really really LOVE some spots of your mound, and other plants that HATE those spots will LOVE other spots of your mound. In the end, you get soil diversity which leads to better plant diversity, which leads to an overall healthier system.
Paul talks about this in the
World Domination Gardening DVD set. If you can get your hands on that, it's worth the watch. Lots of great information.
Hope this helped.