XProtect operates by modifying the file type detection process, deep in the file system itself. See
http://ithreats.net/2010/06/19/about-mac-os-x-v10-6-...
Basically, each file that is written by the OS is checked to see if it meets certain criteria. If it does, its metadata is tagged with a corresponding file type. Most file types are just those that relate files to specific applications, but the XProtect extension adds tags for files that should be quarantined.
Note the comment at the end of the above post. Since XProtect is only triggered by a file save action, it will not detect a pre-existing copy of a malware file, already running on your system. Apple may have moved forward on this since the post was written a year ago, since they need to deal with users with MacDefender already installed. But that may use a different process from XProtect itself.
So you won't see a separate process running, because it's done by the file I/O kernel itself.
XProtectUpdater is the process that calls home and gets the new version of the protection system signatures. It is called by launchctl - the Apple replacement for cron - and the entry that controls it is at /System/Library/LaunchDaemons/com.apple.xprotectupdater.plist, which runs /usr/libexec/XProtectUpdater when it is first installed, and then every 86400 seconds thereafter, (24 hours). So it is launched on a schedule, updates the signature file, and then shuts down again.