Greetings,
Well it get's confusing. There are three possible things you can mean when discussing Shambhala other than of couse fictional stories:
Shambhala is a name for a paradise hidden away in the Himalayas. According to Tibetan Buddhism, it is filled with great adepts (mahasiddhas) and bodhisattvas (future buddhas) who work to benefit all sentient beings. The Kalachakra Initiation given by His Holiness the Dalai Lama, and other high lamas is supposed to bring about a return to that kind of realm.
Shambhala is also the name of a meditation system developed by a Tibeatn Buddhist lama named, Chogyam Trungpa Rinpoche. (Rinpoche is a title given to great Buddhist masters in Tibet. It means "Precious Jewel".) Trungpa Rinpoche formed this group based on elements of Tibetan and Japanese Buddhism, and Mindfulness meditative practices, as well as the art of a "Spiritual Warrior" -- someone who fights his or her own demons to attain spiritual mastery. They have centers all over the world. You can find more info about this group at . It is currently directed by Trungpa Rinpoche's son and sucessor, Sakyong Mipham Rinpoche.
Finally, there is a system of Healing which I believe is formally known as "Shamballa Multidimensional Healing", and everything I have heard about it makes it sound like Karuna to me., but I have never experienced it.
In Dharma,
Ledrub