yea it's real, but you don't get supernatural powers. It's different 'wells' in the body where the chi flows through and gathers, some martial arts promote the circulation of chi in the body and it is said that some sickensses are caused when the chi is blocked. That is also the basis of pressure point based MAs, you send your chi through your fingers on contact to disrupt the chi wells of another person to cause them injury.
as for manipulation, there is some but most of the stuff you hear about old masters sending people flying across the room is really issues of balance and the ability to move your body so you use all of your weight or mass in one hit.
theres stuff like people cracking open coconuts with one slap which I've seen, that stuff is beyond my understanding.