For a long time, the Arduino community had a library (written by Tom Igoe) that would interface the Arduino to the PSC05/TW523 so that it could send X10 commands. (available here) Since I was already wirelessly sending commands via the CM17A, I never took much interest in it.
Edit Nov. 2, 09: Based on a comment by Phil, here's a link to an Ap Note from Microchip that describes how to use a PIC to essentially replace the PSC05. It would be great to port it to ATmega chips. Thanks Phil!
Edit Feb. 23, 09: I've received some very good feedback from Johannes related to changing the send and receive software to have reliable communications using 50Hz line frequency. (He uses an "XM10" X10 module instead of the PSC05 / TW523 for 220V 50Hz.) It's simply a matter of changing 4 #defines - 2 in the X10.lib (for sending) and 2 in my code (for receiving).
In the source for your X10.lib, in X10constants.h change:
#define BIT_DELAY from 1778 to 2133
#define BIT_LENGTH from 800 to 900
In my example for the X10 Receive function, in PSC05.h change:
#define OFFSET_DELAY from 500 to 800
Thanks Johannes! I'm sure others will find this helpful.