They mean what they say: they want to know what you have made at your last several jobs, and what your expectations are for the job to which you are applying. This is not uncommon. Often they want to weed out candidates whose salary requirements are too high for them to meet. Or, if this is a sales job, for example, they want to see that you were earning a sizable commission or bonus--which indicates you are good at your job--or that your earnings have increased over time!

For salary requirements, you state those in your cover letter, in the second to last paragraph. Something like "My salary requirements are in the $XX,XXX to $XX,XXX range, depending on the full scope of the position and the accompanying benefit package."" or "I anticipate a range of $XX,XXX to $XX,XXX, based on the job description as advertised." If, upon interviewing, the position is greater in scope and/or responsibilities and/or requires a higher level of expertise than indicated (and you possess it), you can always try to negotiate that range up on that basis.

For salary history, attach a separate sheet of paper to your cover letter (reference in your letter that your salary history is attached), listing the jobs as they are listed on your resume, and listing your ending salary at that company.