Thanks for the feedback, Kirk! Great to know there are many ways to do it and that I can be done!
Our primary authoring tool is Captivate for the time being, I'm meeting with the client group interested in this approach later today. Agree that it's more about managing the content challenge than the technical one.
I went down this road at another company with SCORM 2004 back in 2007 and we decided to abandon it due to the technical challenges with implementing 2004 content and sequencing.