Damn, can't believe it hasn't been clarified yet...
The rear seat cushions fold forward against the back of the front seats, then the seatbacks fold down FLAT behind them. I can't have been the only one to have seen that in a photo or video recently.
As for snowstorm's question, we've already noticed that and speculated 2 pages back. Yes, there apparently was the possibility that the X would get the all-mode t-case at one point, and the 4WD selector in that picture does appear to have an extra position that looks just like the 05 Pathfinder w/ an "auto" mode:
http://www.nissannews.com/multimedia/nissan2005/pathfinder/colour/10_2005_pathfinder.jpg
Remember that there is a picture of the Xterra with a multi-link coil rear suspension in the preview brochure too, so I'm inclined to believe the one you're referring to is of an early prototype too. The all-mode t-case is out of the picture now, here's the current interior:
http://www.nissannews.com/multimedia/nissan2005/xterra/colour/13_2005_xterra.jpg
Yes, the other picture shows what appears to be a locker switch similar to the Frontier:
http://www.nissannews.com/multimedia/nissan2005/frontier_kingcab/colour/08_2005_frontier.jpg
Locker is still up in the air, but let's hope we made it clear we want to see it.

Brent