[Ger-Poland-Volhynia] writing family history

[rlyster at telusplanet.net]

We are in the process of writing family history and want to get some facts 
right:

With repect to names of town/city:  my understanding is that 

Lotsch = Litzmanstadt   or is it Lodz ?  (Spellings please)

Litzmanstadt is referred to as a place where people were gathered in a camp to 
be registered for resettlement.  Is this correct?

Thankyou,
Rita Lyster, Barrhead