Neecze is correct, the first part of the reaction is a Mitsunobu.
For your 2nd question, yes, you are hydrolyzing the ester off of the sulfur group. The NaOCH3 and MeOH are used for this purpose, so you are left with methyl acetate and the sulfur anion, which you quench at the end of the reaction with an acidic solution (HCl).