PCGS Holder X/500 Meaning

It means some dealer sent in a bulk submission of 500 proof Olympic dollars. they paid for a custom label (They probably aren authorized to use the olympic rings) and paid to have them labeled 1 of 500. The number 1 has no special significance as typically on a submission such as this ALL the coins are "1 of however many"

So their is absolutely nothing special or important about this coin, just a dealer trying to hopefully get a newbie to bite on a "#1 coin"

I would agree the submitter/label is probably not authorized - authorized uses typically cite (may be required to cite?) the appropriate section of the law. If you watch the TV commercials over the next couple months leading up to the games, you will see the logo everywhere...