EP means expansion pack. At the moment, the only expansion pack we have is University. Come September, it is Nightlife.
When you see these questions asked in the forum, members are asking whether or not it is compliant with the expansion pack they have installed (or not installed). With each expansion pack that we get, some internal code gets changed (because Maxis does have the upper hand on things) and some of our hacks and mods get affected. The creator has to keep up with these changes and make sure they modify their current creation to be compliant or they make a separate creation altogether (and maintain these versions).
A few other EP-related terms you might see:
EP-not required - You can use this with or without the Expansion Pack installed EP-required - You must use this with the Expansion Pack required