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1) You can use a command to change a party member's status to "Alive" if their status at the end of the battle is "Dead". Either Path of Radiance or Radiant Dawn uses a similar function, returning to your army any characters that have been defeated prior to a certain point (though after that, any units that die will be gone for good). While this isn't what you're looking for, I'm bringing it up anyway if you decide to do this for later games.
2) This one is probably what you're looking for. In the "Difficulties" window (which can be found in "Config 1" in the Database), you can create additional difficulty levels and/or alter existing ones. One of the options that you can toggle is "Allow Injury". If you've ever played New Mystery of the Emblem (either in original Japanese or with the English patch), Awakening, or Fates, this option is exactly the same as the "Casual Mode" for those games. Any time a Player unit would be killed, they're instead treated as "Injured" (only exception being if you create an event that changes a player unit's status to "Dead"), meaning you can still use them in later scenarios. However, this doesn't apply to Ally or Enemy units who you want to make recruitable, as they'll still be treated as "Dead" Ally/Enemy units if they're defeated before joining the player's army.