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[Ahn Mach]

I am wondering what the referenced patent section is for. I have seen a lot of patents that have "expired" referenced in these sections but I have seen some that are still "valid". Is this section for "hey, I am improving on these patents" type section.  ... Not real sure how to word this question but my aim is to get a general understanding of the purpose and implication of this section in a patent.

[JimIvey]

If you're referring to the "References Cited" section of an issued patent, those are the references that have been cited (and presumably considered by the examiner) during prosecution of the application that ultimately issued as that patent.  They include things found by the examiner during a search and things submitted by the applicant(s) in an Information Disclosure Statement (IDS).

I suppose that section identifies the printed references considered most pertinent by the examiner and that came to the attention of the applicant(s).  The list only reflects what's been considered (or at least cited in the file).  It's not meant to suggest this is no other prior art in existence.  To some degree, the length of the list and the variety of the sources cited can give you some idea as to the likelihood that all or most relevant prior art has already been considered by the examiner.  In other words, if the list is particularly short, the patent might be susceptible to a challenge on prior art grounds.  

I hope that helps.