What I got out of it was that the X-blade HAD been forged, and so a war was fought over it, but it like, disappeared? So MX was like, "Heh, I'mma forge it again." So he's like, "I'm an annoying old man and I need a younger body. Oh hi Ventus." "Ven! Fight the monsters and give in to darkness so I can get you to fight one of Eraqus' kids and make the X-blade!" and Ven's like, "I can't". So MX is like, "screw it", and extracts the darkness from his heart and makes Vanitas, but Ven's all like, "I'm dead." So MX is like, "Crap..." and takes him to Destiny Islands. Then Sora's like, "Howdy ho buckaroo!" and Ven's like, "WTF who are you?" And Sora's like, "I can fix your heart." And Ven's like, "Okay cool." and MX is like :0 so he takes him to Eraqus so he can make his heart strong and then he's like, "I'mma come back and get Terra to be my body and have Ven and Vanitas fight and give me the X-blade so I can see what happens!
"
So he does.
But then Terra's armor comes to life and is all like, "...bitch" and they fight and Xehanort's all like, "I'm dead." And then the explosion comes and kinda messes things up for him.