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Karl Schwede
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The obvious thing to do is to choose $H$ a general hypersurface containing $X$. In other words, choose a general global section of $I_X \otimes O_{P^n}(k)$ for $k \gg 0$.

Certainly $H$ is smooth away from $X$ by Bertini. I don't see why it should be smooth along $H$ though (unless for example, $H$ is a complete intersection).

Even in general, you are still ok locally, in other words a regular ring is always locally a complete intersection, so in a neighborhood of every point there is such a smooth variety (they might not glue, or be smooth elsewhere though). Let me track down a reference for this at least.

Karl Schwede
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