So I have no issues exporting a model from Blender to .x format, but when I either try to convert it using x2egg or directly load it I get an error saying specifically: “:xfile(warning): Too many faces in MeshMaterialList within” over and over again.
Is there actually a limit to the number of faces that can be loaded in panda? and if so any way to get around/manipulate this?
No, it just means that your .x file is internally inconsistent. There is a MeshMaterialList that contains references to a number of faces, but there are more faces in that list than there are actually faces in the model.
So, basically, whatever wrote out your .x file is bugged.