What sort of xenophobia and discrimination have you heard so much about? Yes, Japan is still reeling from its self-imposed 200 years of isolation, but modern communications today (e.g., Facebook, Internet, smart phones) helps to spread a lot of the world around this tiny country. There will always be some measure of xenophobia, but what level of it are you concerned about?
If your plans are to live and work here, just focus on getting qualified in the field that interests you.
What is their family-oriented beliefs? I know that they teach their children to respect elders and authorities.
Traditionally, yes, but children these days seem to be drifting more and more into being juvenile delinquents or spoiled brats or social misfits (because they shut themselves off from their families and because they use cell phones instead of face-to-face communication with friends). Look up "classroom chaos", too. You will still find a lot of families that have grandparents living with them, and for the most part, students still treat their teachers with respect.
How do teachers deal with bullying?
Case by case. If it's brought to their attention, it will depend on the situation. Why do you ask this?
What are some things that they place high importance on (i.e., respect for elders)?
This is a huge topic! How would you answer it if someone asked about your own culture?
1. not speaking out (the adage "the nail that sticks up gets hammered down" is still prevalent)
2. honne vs. tatemae (at all levels, from the personal to the type we see from the government and companies when something has gone afoul)
3. cleanliness (sometimes to a fault, but other than erasing the chance to combat allergies, keeping one's home and office and city clean is still a darned nice thing)
4. following orders blindly (that darned old patriarchal society rule of thumb not to question things, openly at least)
5. the "old boys" (OB) network (which involves women, too, but which starts in school and advances to university; it basically states that you link with people like superiors/peers and advisors (teachers) who can help you later in life to get jobs or promotions, etc.)
6. tradition (look up any festival for an example, or traditions about visiting one's family grave)
How much do I need to make to live in Japan?
This will depend on your personal lifestyle, but figure that subsistence wages for the average person will be roughly 200,000 yen/month. Depends on where you live, too (urban vs. rural environment).