Johann Schmidt AKA Red Skull is the villain, played by Hugo Weaving. Unlike Captain America, the character is a Nazi German officer and the head of HYDRA, the special sciences branch of the Nazi SS. In this movie he forces Dr. Abraham Erskine to develop a Super Soldier serum in order to make him the pinnacle of human perfection. Erskine reluctantly complies, but when Schmidt takes the serum, it does not work as planned, giving him enhanced strength, yet also turning his face a grotesque blood red and giving him a hairless skull appearance. As a result, Schmidt has his current head scientist, Arnim Zola, design masks for him which look like his old face and proceeds to wear those in public, for all intents and purposes looking as if nothing has happened to his face. Erskine later explains to Steve Rogers that the Super Soldier serum enhances the core of whoever takes it; therefore, Rogers, a "good" man in-and-out, becomes a greater man, while Schmidt, a "bad" man in-and-out, becomes even more evil and hideous.
Is this in the same universe as the rest of the Marvel movies?
Yes and no. All films made under the Marvel Studios banner (i.e., Iron Man, The Incredible Hulk, Thor and Captain America) are all set in the same universe, with the characters crossing over, culminating in The Avengers (2012) movie which tied these films together. Marvel also owns Punisher and Blade, however Punisher (2004), Punisher: War Zone (2008), Blade (1998), Blade II (2002) and Blade: Trinity (2004) are not in the Marvel Cinematic Universe. Other Marvel-based films owned by other studios are NOT set in the Marvel Cinematic Universe, due to differing ownership. This includes Spider-Man and Ghost Rider (both owned by Sony), the X-Men, Fantastic Four and Daredevil (all owned by Fox).
No. The tesseract converted him to energy and teleported him into the rift it had opened. He does not appear in the sequel, Captain America: The Winter Soldier (2014). Furthermore, Hugo Weaving said that he is not interested in returning as Schmidt.