The N-Forms were a part of Time Lord technology created by the Patrexes chapter for use in the war against the Great Vampires. After the war ended, their central intelligence core was downloaded and they were shut down.
They were machines that were programmed to destroy their enemies and were quite capable of destroying a planet to accomplish their goal. They were capable of attaching themselves to objects on a molecular level and opening tiny dimensional rifts inside the scarred brains of people that ingested the compound to which the N-Form had attached itself. This allowed them to emerge from thousands of points rather than from a single large, potentially continuum destroying rift. This was done through the N-Forms ability to slip between dimensions allowing their extrusions to kill their enemies.
They were only capable of being shut down by interacting with them through an engram. It was also possible to attempt to reason with an N-form but they were single minded in their tasks. (PROSE: Damaged Goods)
During the Last Great Time War, an activation signal was sent by the Time Lords, reactivating an N-Form laying dormant in history. The Seventh Doctor encountered one such N-Form which had bonded with the corpse of Simon Jenkins. (AUDIO: Damaged Goods)