Seems to me like it is. There are only finitely many distinct powers of $x$ modulo $p$, by Fermat's Little Theorem (they are $\{1, x, x^2, ..., x^{p-2}\}$), and the coefficient that I choose for each of these powers can only be taken from $\{0,1,2,..., p-1\}$. So essentially I'm choosing amongst $p$ things $p-1$ many times, resulting in at most $p^{p-1}$ distinct polynomials.
Yet an assignment claims that $\mathbb{Z}_p[x]$ is infinite.
Here's the flaw in your reasoning: when you consider $x$, the variable of your polynomial, $x$ is not taken to be a number in $\mathbb Z_p$. In fact, $x$ is not really a number of any sort, and the polynomial is not meant to be interpreted as a function, but rather a sort of "algebraic object." Think of it as a tuple with a number of entries equal to the degree of the polynomial plus one.
You're thinking of $\mathbb Z_p[x]$ as the set of polynomial functions $f:\mathbb Z_p\mapsto \mathbb Z_p$. But the polynomials are not defined this way. They are defined only by their coefficients.
For example, $$x^{p+1}+1= x+1$$ if $x\in\mathbb Z_p$, but $$x^{p+1}+1\ne x+1$$ if the two above polynomials are regarded as elements of $\mathbb Z_p[x]$.
One last clarification: $$\mathbb Z_p[x]=\{a_0+a_1 x+...+a_n x^{n}: a_i\in\mathbb Z_p, n\in\mathbb N\}$$ However, you might have thought that $$\mathbb Z_p[x]=\{a_0+a_1 x+...+a_n x^{n}: a_i,x\in\mathbb Z_p, n\in\mathbb N\}$$