Visual Long Multiplication

python, 303

def f(s):
    a,b=s.split('*')
    a,b=map(lambda l:reduce(lambda x,y:x+[1]*int(y)+[0],l,[0]),[reversed(a),b])
    n=sum(map(len,[a,b]))
    l=[[' ']*n for i in xrange(n)]
    for i,x in enumerate(a):
        for j,y in enumerate(b):
            l[i+j][j-i+len(a)]=r' \/x'[x+2*y]
    return '\n'.join(''.join(x[2:-1]) for x in l[1:-2])

I think it's enough human-readable.
Verification:

print '---'
print '\n'.join('"%s"'%x for x in f('21001*209').split('\n'))
print '---'
---
"       \ /            "
"        x /           "
"       / x            "
"      / / \           "
"   \ / /   \ /        "
"    x /     x /       "
" \ / x     / x /      "
"\ x / \   / / x /     "
" x x   \ / / / x /    "
"/ x \   x / / / x /   "
" / \ \ / x / / / x /  "
"    \ x / x / / / x / "
"     x x / x / / / x /"
"    / x x / x / / / x "
"     / x x / x / / / \"
"      / x x / x / /   "
"       / x x / x /    "
"        / x x / x     "
"         / x x / \    "
"          / x x       "
"           / x \      "
"            / \       "
---

Python 3, 205 bytes

L=a,b=[eval("+[0]+[1]*".join("0%s0"%x)[2:])for x in input().split()]
A,B=map(len,L)
for c in range(2,A+B-1):print((" "*abs(c-A)+" ".join(" \/X"[a[i-c]+2*b[i]]for i in range(max(0,c-A),min(c,B))))[1:A+B-2])

The expressions are quite long so I think there's a fair amount of room for improvement, but anyway...

Takes input space-separated via STDIN, e.g.

21 32
   \ /
    X /
 \ / X /
\ X / X  
 X X / \ /
/ X X   X /
 / X \ / X 
  / \ X / \
     X X  
    / X \
     / \

There's a possible trailing space on some lines, but the A+B-2 ensures that all of the trailing spaces are within the bounding box.