I think that the Literature and English courses are more similar now than ever before. In fact both of my English and Literature teachers said that the skills developed in one, help you in the other. The focus on close language analysis in Literature translates nicely to English as examiners appreciate it when you talk about the connotation or implied meaning of a word. Also, the 'hour glass' paragraph structure which you might have encountered in Literature, fits in really well with the text-response essay and the context expository essay. This paragraph structure is when you begin generally, then become more tightly focused, then finish with broad statements about the text - a lot like the shape of an hour glass. In short, don't worry about not having done English 1/2.
A quick note about Language Analysis. Elaborating on what others have said, it is a great idea to read opinion pieces and editorials in the paper. Try to find the overall contention (eg. parents should set a better example at their children's sports games), then try to think of a few reasons why the writer thinks this should be done (eg. parenting is about setting a good example, parents should always act responsibly and rationally, and parents have the opportunity to inspire good qualities in their children especially in the emotional setting of a sports game). This will get you in a great language analysis 'mindset'.
Also, it'd be a good idea to read your English texts once during these holidays (if you haven't already). Read it for fun, not for analysis. Soak up the emotion and the thrill of the book not worrying about themes, structure and portrayal, you'll have plently of time to think about those later. You mightn't expect it but when you simply read a book, just for fun, you pick up (perhaps subconsciously) on so many ideas, techniques and interesting points that you probably wouldn't have if you were reading with analysis in mind. In any case, it's good to familiarise yourself with a text to get a headstart on memorising quotes!
Overall, the fact that you chose to Literature 1/2 in year 11 tells me you've got a passion for the English language and enjoy it in general. In my opinion, if you have this same passion for a subject you will go very far in the VCE. I'm sure you'll do well
