Well i wish i knew about this coin too! I was too busy mining other coins, but it seems people were complaining about it because the developers dropped the number of coins down to 22 million, making the difficulty higher, i also think there was a bug in the code that was giving a high block reward for the first few blocks before they patched it.

Yeah, it's been around 12 hours now and difficulty changed only few times. In the code there is:

static const int64 nTargetTimespan = 24 * 60 * 60; // Xcoin: 1 day
static const int64 nTargetSpacing = 2.5 * 60; // Xcoin: 2.5 minutes
static const int64 nInterval = nTargetTimespan / nTargetSpacing;

so interval between difficulty changes is 24 * 60 / 2.5 = 576 blocks. For me it looks like the target difficulty adjustment period is 1 day, not 1 hour.