StakeVentures has a good article on the new XAuth stardard/service
The problem that this aims to fix is really a UI one, not a security one. If you know the user already uses Google accounts and Meebo, there is no need to over clutter your user interface with login buttons to 40 different social networks.
The article includes some sample code for both parties, and a key criticism:
I find probably the biggest issue with XAuth is the choice of name. XAuth is not an authentication protocol. I would call it a discovery protocol. It has more in common with WebFinger (again in a complimentary way) than with authentication protocols like OpenID and OAuth.
I also think the choice of Extenders and Retrievers is confusing. I think using Provider and Client would be clearer. Lets not invent more terminology if it isn’t necessary.