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Originally Posted by http://en.wikipedia.org/wiki/Xmas

Xmas is an abbreviation for Christmas. It is derived from the word ???????, transliterated as Christos, which is Greek for Christ. Greek is the language in which the whole New Testament was written.

Originally, Xmas was an abbreviation where the X represents the Greek letter chi, with a hard ch, which is the first letter of Christ's name in Greek. However, because of the modern interpretations of the letter X, many people are unaware of this and assume that this abbreviation is meant to drop Christ from Christmas.

In ancient Christian art X and XR (Chi Ro--the first two letters in Greek of Christos) abbreviate Christ's name. In many manuscripts of the New Testament, X abbreviates Christos (Xristos). The Oxford English Dictionary documents the use of this abbreviation back to 1551, fifty years before the first English colonists came to America and sixty years earlier than the completion of the King James Version of the Bible. At the same time, Xian and Xianity were in frequent use as abbreviations of Christian and Christianity.

The abbreviation is widely but not universally accepted; some view it as demeaning to Christ. Similarly, Xianity is sometimes used as the abbreviation for Christianity (although this usage is much less common than "Xmas").

I never knew this. I had also heard it was an atheist way of eliminating Christ from Christmas. ("crossing" him out of Christmas) I was wrong.