Hi Betsy,
Sorry it's taken so long to get a reply to you.
Yes, you can create the Learning Objects using Xerte Online Toolkits and then export them for use offline. Obviously some pages (rss feeds, youtube, embedded websites, etc) won't work if offline but the majority will. You export by selecting the LO in the Workspace and clicking on the Properties button. Select the Export tab in the popup window...
John