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They are talking about the Rakata which are a Bioware invention. And yes they are part of the official cannon. They're Empire was scatted across the galaxy and they had created giant factories that fed off the Force. The Star Forge also took the words solar powered to new levels. But yeah, go play Knights of the Old Republic 1.
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Yes apparently this Emperor has been around since the Great Hyperspace War when the Republic beat the Sith Empire and tried to purge all traces of it. The Jedi master in question is kept in stasis (where he battles the will of the Sith Emperor which makes it sounds very close to the Immortal Emperor in 40k battling the Chaos Gods). For more on this Jedi master, play Knights of the Old Republic 1 and 2 (which amusingly enough reveals a lot about him ...if you trust the source). Seriously go play those games but make sure to get the patch/mod for Kotor2 that fills in the cut content.
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Force users in the EU are only limited by the authors imagination and the plot. The power you mention is called Battle Meditation and it saps the will of the enemy and boosts the confidence of your own troops.
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Midiclorians are cannon (sigh) but the only the prequel films use them (and maybe a few EU books but I don't recall). Other than that no one speaks of those things and the EU likes to keep the Sith mystical. There's a reason they have Sith Alchemy to create monsters and the Sith Lords in the Old Empire had crystal swords powered with the Dark Side which I think is awesome.