Your backflow preventer will be just after your pipe exits your house and before your valves (manifold). If you have the pipe coming out of the front and back of the house, you will need two backflow preventers. Yes, to answer your question, the manifold is the term for a grouping of valves in a single location, usually located in a valve box. What you said pretty much makes sense as far as the controller controls the valves, the valves open to flow water to the sprinklers. The 1 1/4 inch pipe will be alright at 55 PSI, somewhat overkill, but it will work.
Tony Posey
Ridge Run Landscapes