According to Gates and Microsoft, it stands for eXPerience..
However, others have the following..
Windows eXPerience: Windows will take you for a ride
Windows Xperimental Pocket-sucker
Windows eXPert needed here
Windows eXPensive
Windows will Xamine your Personal data
Windows will then Xamine your Purse
Windows is Xcellent at Propagating itself
Windows: the eXtraneous Program
Windows eXPectorate
Windows eXPatriate
Windows: the Gates taX imPerium
Windows taXes my Patience
Win Does aX for Payment
Windows: the X is the sPot where you put the money
Windows has Xtra Perniciousness
Windows Xtra Pressure
Windows: Xtremely Pugnacious
Windows: Xtremely Pervasive
Windows: Xtremely Perverse
Windows: Xtremely Persnickity
Windows: Xtremely Paranoid
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