Also, the Droid X will launch in August or so, so if you go that route you may want to wait a few months (it also doesn't have the droid's fiddly d-pad.
You're probably thinking of the Droid 2.
You can buy it outright in most of the world.
Lots of places have 12 month contracts (Optus in Australia).
And lots of companies are letting you get out early (ATT).
There seems to be lots of lies in this thread, something I don't expect to see on hacker news.