The CS department is now strictly enforcing the CS 173 and CS 225 prerequisites. Students must have credit for both courses (either through taking the class, passing the proficiency exam, or transferring credit from an equivalent course taken elsewhere) before they can register for 374.
Jeff's Algorithms textbook, which is freely available online, is a good resource for the algorithms portion of the course. The book web site also contains lots of additional lecture notes, along with homeworks, lab handouts, and exams (but no solutions) from his past theory classes. We note that each instructor of 374 has their own style and may differ from Jeff's style/notation/philosophy. For this semester we recommend paying good attention to the lectures and slides available on the schedule page.
You may also find resources from other Illinois instructors useful:
Lecture videos of several past editions of 374 by a variety of instructors (Chandra, Jeff, Sariel, Ruta/Timothy and others) are available on Mediaspace. You should be able to find them relatively easily.