Xgrid is a grid or a compute cluster or distributed batch-processing engine. A grid allows an application programmer or system administrator to manage and coordinate a collection of computers and to distribute portions of a task across multiple computers.
Apple have [an Xgrid introduction|http://www.apple.com/server/macosx/technology/xgrid.html] available, and for details, have a look at the [Xgrid Administration and High Performance Computing|http://images.apple.com/server/macosx/docs/Xgrid
Admin_and_HPCv10.5.pdf] document that is available among the Mac OS X Server manuals.
Here is the [high-level overview of Mac OS X 10.5 Leopard Server technologies|http://www.apple.com/server/macosx/technology>, which can connect you with answers to many questions.