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If a spell you cast has in its mana cost, you choose the value of X before calculating the spell's total cost.
If there are additional costs to cast a spell, or if the cost to cast a spell is increased by an effect (such as the one created by Thalia, Guardian of Thraben's ability), apply those increases before applying cost reductions.
The ability doesn't change the mana cost or mana value of any spell. It changes only the total cost you pay.
The cost reduction can apply to alternative costs such as flashback costs.
The ability can't reduce the amount of colored mana you pay for a spell. It reduces only the generic mana component of that cost.
