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PS3 does Upconvert DVDs now, as long as you run the latest updates on it.
No news on X-FILES in Blu yet, but I am not sure if the format is HD friendly or if it was made for SD only. I would keep the XFILES on DVD cause with the upconvert, it makes DVDs look awesome. As long as you are running your system with HDMI cables.
As for region free... don't worry too much about it. There are now only 3 regions for Blu-ray, and most Blu-ray discs are region free anyways. As for DVDs, you can get a cheap ($30) DVD player at Best Buy that is region free. (Cyber Home makes them).
I am not sure PS3 will ever become "region free" unless someone hacks it, but we'll see.
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