I know some distro's (Moblin? ) have X starting as a user other than root already... What is required to do this? What steps need to be taken?
I don't think it matters but I think X is started by KDM on my system and I'm running Arch Linux
The first step that needs to be taken is to make sure that you have a card that supports kernel-mode-setting. If you don't you will likely still have to run X as root. Ubuntu is looking into doing this and thus has a small set of directions here: https://wiki.ubuntu.com/X/Rootless which I think should work as a good starting place for most major distros.