X windows is X window there are a lot of different versions. Most of them are commercial, but the most common for desktop users is from the XFree86 project which comes with Linux and most BSD's. X windows ISN'T a gui, its a network protocol.
The window manager is what provides the gui-ness, usually the default one that comes standard is TWM or something and it sucks thats why we have nicer ones like kde and gnome. If you didn't have a WM then all you would be staring at is that crapy gray sceen with all the dots. Remember in Unix land each program has a specific purpose and it does it well. One program to take your input/output. one program to interact with the network, one program to get websites, one program to control the icons each has its own very seperate job.
Think of the TCP/IP layered protocal design were each layer has it's own protocol has purpose and is kept seperate. So all a developer has to worry about is the input and outout of his program, not how each specific program that it may possibly come in contact with. Ideally everything in a Unix box should work that way.
It is kinda of awkward at times, but it leads to stability and versitility. compared to windows were "windows" does everything, and if on part brakes, say your tcp/ip protocal stack gets broken or your modem drivers crap out, more than likely weird things are going to be happening on your desktop, like scrambled icons and it will eventually crash the entire computer. In Unix you would just kill the offending program and start it up again or replace it with a better one, 90% you don't even have to reboot. (like Gentoo were you can surf the web using a text browser or play console games while actually installing your OS at the same time!) XP and w2k has attempted to copy Unix's way of doing things and XP is pretty unix like with multiple users and all, but it still has a long way to go to catch up with linux or freebsd.
X windows is very old. It was around before even dos came out. People were plugging away on 1240x768 resolution high end unix workstations when the windows/dos crowd were wetting their pants over 640X480 ega graphics (include me in that a 386 was a very good thing to me!). X11 refers to the fact that this or that version of X window was loosely based on the 11 version of X that came out in the mid 80's or some freakish thing like that. If you must know the current version of X window is X11R6. But it is more of a tradition than anything nowadays.
Since it is so old the idea of a server and cleint model thing we are familar with wasn't realy established to well in the minds of the developers, (probably cause they they were high on pot and inane geekyness).
A X server is you collective input and output devices. Think of mainframe type situation. The keyboard and monitor arn't actually part of the computer they were add-ons to make programming easier. SO a x server is you input/output. Like a consule, your command line interface is not actually the computer OS its a add-on for your benefit and so X windows.
They client is the computer that uses the input to spawn programs and operate and so on. Most of the time it's your own computer but it can just easily be anything that can impliment the X windows protocol. I use my 200mmx laptop as a server and my 1.13g desktop as the cleint that way I can run stuff like mozilla and things on my laptop with out croaking, plus when i play games i can use the laptop to play mpg songs, control the cdplayer volume, download crap, all of it using my desktop's power and hardware resources (sound card/harddrive etc etc)without even interrupting my quake3 game!
client --- does the proccessing
server --- does the input output. (think of it serves your keystrokes and you monitor input to a client machine)
kinda stupid, but thats what it is.