Free 3D Modeling software, I don't know how good this is because I haven't used it, somebody in my 3D modeling concept course did a presentation on this software, it is opensource. http://www.blender3d.org/cms/Home.2.0.html
I don't know how good any of these are, but a quick search turned these up on the first page of results. I don't know how many applications actually export to .X files. I believe you need to export them in a 3DS Max file format and use the DirectX SDK to convert them to .X files.
I would suggest blender from www.blender3d.org. It is open source and has been around for long time. It has decent .x export if you take care you dont have "." in your object, texture etc. names. Even that bug might be fixed by now. You propably need to read through the tutorials to get hang of blender but after learning the basics it is solid tool for experts and hobbyists with low budget.
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