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Its name is a tongue-in-cheek reference to extreme sports, but it's actually a highly-disciplined software development methodology. It emphasizes feedback, communication, and very high quality code. It stands in stark contrast to the traditional "draw a lot of diagrams for a month or three, then sit down and write crappy code for a year, then pull a lot of all-nighters to meet deadlines, then ship with 8000 bugs" methodology.
We've started a group of programmers, meeting once or twice a week in San Francisco, doing a more-or-less real project in the XP style. See our Bootstrap Wiki to learn more. Feel free to join us! (Also, read my bootstrap project diary for a blow-by-blow...)
Check my Talks on Agile Development and XP elsewhere on this site.
Other XP links: