What is the first circle of hell called and what two types of souls live there?

It depends on the religion. Egyptians, Greeks, later adopted by Christians believe in a hell. Something which is pitiful because hell does not exist according to the bible. Hell or Gehena and Sheol was a place where people were burned but when dead. This way the dead people wouldn't spread disease and stink so they were burned in Gehena or Sheol found around Jerusalem.

Now, the first cycle of hell I believe is limbo. It's taken from Dante's play. There resides non-Christians and unbaptized pagans. This is the answer.