Let's do the calculation of the free-particle propagator in the operator formalism, which is much more convenient than the path-integral calculation.
The propagator is defined as the solution of the time-dependent Schrödinger equation (initial-value problem):
\psi(t,x)=\int_{\mathbb{R}} \mathrm{d} x' U(t,x;t',x') \psi(t',x').
Let's use the Schrödinger picture, where the time dependence is fully at the state vectors, i.e.,
|\psi(t) \rangle=\exp[-\mathrm{i} \hat{H}(t-t')] |\psi(t') \rangle.
The observable operators and thus also their eigenvectors are time-independent. Thus we have
U(t,x;t',x')=\langle x|\exp[-\mathrm{i} \hat{H}(t-t')]|x' \rangle.
For the free particle
\hat{H}=\frac{\hat{p}^2}{2m}
and thus it's convenient to write this in terms of the momentum-eigenstates, for which we know
\langle{x}|{p}\rangle=u_{p}(x)=\frac{1}{\sqrt{2 \pi}} \exp(\mathrm{i} x p)
and the completeness relation
\int_{\mathbb{R}} \mathrm{d} p |p\rangle \langle p|=1.
Inserting this completeness relation in the expression for the propagator, we find
U(t,x;t',x')=\int_{\mathbb{R}} \mathrm{d} p \langle x|\exp[-\mathrm{i} \hat{H}(t-t')]|p \rangle u_{p}^*(x')<br />
= \int_{\mathbb{R}} \mathrm{d} p \frac{1}{2 \pi} \exp \left [-\frac{\mathrm{i}}{2m} p^2 (t-t') \right ] \exp[\mathrm{i} p(x-x').
To make sense out of this integral, we have to regularize this expression by substituting
(t-t') \rightarrow t-t'-\mathrm{i} \epsilon, \quad \epsilon>0.
Doing the Gaussian integral and letting \epsilon \rightarrow 0^+ afterwards yields
U(t,x;t',x')=\sqrt{\frac{m}{2 \pi \mathrm{i}(t-t')}} \exp \left (\frac{\mathrm{i} m(x-x')^2}{2 (t-t')} \right ).
The sign is thus clearly as specified in my previous posting.
In the path-integral evaluation of the propagator the exponential is given by the classical action. This is the simple part of the path integral approach. The somewhat tedious part is to get the prefactor which is the path integral over all paths with the homogeneous boundary conditions x(t)=x(t')=0. For this calculation you have to go back to the descretized form of the path integral, evaluate the multi-dimensional Gauß integral and then take the continuum limit. You find the calculation (for the only slightly more difficult case of the harmonic oscillator) in my QFT manuscript,
http://fias.uni-frankfurt.de/~hees/publ/lect.pdf