[sp]Starting from $0$, you can get sequences of terms ending with another zero, for example
$-1,\ 0$ (two terms, with sum $-1$),
$1,\ 2,\ -3,\ 2,\ -3,\ -2,\ -1,\ 0$ (eight terms, with sum $-4$).
In fact, for any $n$, starting from $0$ you can find sequences of $2n$ terms that bring you back to $0$, but the sum of the terms in the sequence will always be $-n$. So to minimise $$\Bigl|\sum_{n=1}^{2004}x_n\Bigr|$$ you need to build up a negative sum from such sequences, and then end with a run of positive terms to cancel out as much as possible of the negative sum. For example, suppose that $$x_n = \begin{cases}-1&(n \text{ odd, }1\leqslant n\leqslant 1959), \\ 0&(n \text{ even, }2\leqslant n\leqslant 1960), \\ n-1960&(1961\leqslant n\leqslant 2004).\end{cases}$$ Then the sum of the first 1960 terms is $-980$, the sum of the remaining terms is $1+2+3+\ldots+44 = 990$ and therefore $$\Bigl|\sum_{n=1}^{2004}x_n\Bigr| = 10.$$ As far as I can see, that is the smallest possible value for $$\Bigl|\sum_{n=1}^{2004}x_n\Bigr|.$$[/sp]