Does anyone know if the Droid X is Wifi capable or is it enabled. I was told that Wifi costs extra but I was able to connect to my LAN via the phone at home.
Connecting the phone to your home (or any other) network via wifi is fine, as long as the network is the source of your connection.
The service that costs extra is using the phone itself as a wifi hotspot that uses Verizon's 3G as the connection. Using your phone's service to get internet access on another device is called "tethering." (The term originated when you had to connect, or tether, your phone physically to the device via a cable.)
Check the DLNA APP.