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Lauren,

It seems to me that the answer depends on the content of Document X and
its status as a record or non-record according to your policy.  If the
draft/version is a record in and of itself (meaning you are required to
keep it as a unique record), then you'll likely want to keep it as long
as you keep the final version.  However, if your retention policy allows
for destruction of drafts/versions of Document X once it reaches "final"
status, then you can destroy the versions once Document X is final (at
least from a policy standpoint - the technology to facilitate that may
be lacking).

Hope that is helpful.

Julie




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