For disc it is basically Holy Fire with different animation and giving mana instead of consuming it. So yes it interacts the same way with glyphs and talents. (As stated in the talent description if I'm not mistaken.)
Last time I checked it worked. Just try to smite without Solace on the target and then try after casting Solace. It's a 20% increase for me.
As for the stacks - no. Solace doesn't do that.