x.v. Color is "xvYCC" ("Extended-gamut YCC"), a
Color Space for video. "x.v.Color" is Sony's name for "xvYCC".
It's a new standard published by the IEC in 2006, a color space that supports a gamut twice as large as that of the sRGB color space, allowing the creation of deeper colors/hues. A mechanism for carrying the gamut boundary definition for xvYCC was defined in the HDMI 1.3 spec.
Now, what does this actually do?
As far as I know --- nothing.
If your TV has x.v.Color, it means that the xvYCC color space is supported. But that's the hardware, not the video content.
Blu ray and HD-DVD specs do not support xvYCC/x.v.Color and/or Deep Color. Since there's no home video format that uses it, then it serves no other purpose than extreme future-proofing, if you're one of those who believe that there's actually such a thing as "future-proof"
.