Poor Arjuna

Just finished the second teaching of the Bhagavad-Gita, and I'm not sure what to make of it. There's the fact that Lord Krishna seems to be playing with Arjuna's mind, or the fact that we are embodied in our bodies but not really. Lets start with the Krishna/Arjuna issue:

It seems like Arjuna is seriously incapable of killing a person, but Lord Krishna keeps insisting, saying that if Arjuna kills somebody he won't really be killing them. The same ges with death; if the person dies, its not like thier really dead:

"He who thinks this self a killer
and he who thinks it killed,
both fail to understand;
it des not kill, nor is it killed"

I don't understand it!!! If you think you're a killer but you're bot, and if you think you just got killed but you didn't, then what are you?!?!?! It seems like there could be some sense in what Krishna is saying, but not really. It all contradicts. This kind of leads into the next topic.

There are two parts of a person: the actual self and the body. The self is the soul and the body isn't very important; it just shelters the soul, like a blanket or the shell of a turtle. When we die (or when we don't die as Krishna likes to see it) we leave our bodies only to be embodied in another one, like reincarnation. Its like growing out of clothes; after you've grown out of your old clothes, you discard them and get new ones. Apparently, it's the exact same with bodies.

Meanwhile, in a far away land away from this confusion, Arjuna still cannot find it in himself to kill a person. He' aware that if he does kill, he would be forever burdened with a guilty concience, so he would rather "beg for scraps of food than to eat meals smeared with the blood of elders".