You dont' go into X's configuration to change how the font works.
In fact you don't need to go into any X configuration files at any time for any reason anymore when dealing with fonts.
If you want to use new fonts, put them in a ~/.font directory for your user or for system wide use put them in /usr/share/fonts (behavior is controlled by /etc/fonts/fonts.conf file). Just copy the .ttf files to one of those directories and it immediately becomes aviable. (athlough you probably want to log out and back into X just to make sure)
Both KDE and Gnome have their own font settings. In gnome you have gnome-font-properties tool. You can either call it from a xterminal or find it in your application menu. In KDE font control is inside the Kcontrol panel.
Most of the time for LCD displays you want to enable "subpixel rendering" for "anti-aliased" text to get rid of the jaggies.
For fonts you can find and copy over the *.ttf files from Windows if you want, and there are several free fonts online you can get that are decent like dustismo. Also if your distro has a good package manager there are usually a few font packages that are aviable for download.