Luc came to the Mountains of Dhoom.

Isam waited in the high passes.

The hunt is now begun. The Shadow's hounds now course, and kill.

One did live, and one did die, but both are.

The Time of Change has come.

 

Is there any chance that "he who is dead yet lives" refers to Slayer instead of Rand?

I always thought so. I figure that when we finally learn what Slayer's deal is (that will happen in ToM, if I understood Brandon correctly), we'll know which one of them was dead and which alive when they first met, and how they came to be connected the way they are.