1) I've read caffiene raises your metabolic rate although I'm not sure if the exact scientific explination. May be something to do with increasing your hart rate. It can apparently work better in combination with ephedrine for fat loss, but I've never tried it and it can be dangerous for certain people.
2) Drinking alot of water helps to fill you up so you don't eat as much. Alot of the time, when you feel hungry, it's actually water that the body needs. It also helps your body to matabolise stored fat and a drop of a couple of percent in your water levels causes your atheletic performance to drasticly drop, so if you're well hydrated, you can work out more efficiently. You should drink at least 2 litres of water a day, but more is better even if you are píssing every half an hour
Caffeine is also a diuretic though so you need to drink more water if you also take/drink caffeine.
Caffeine, water consumption, bench purchase 
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