SCORM (or Shareable Content Object Reference Model) is a popular method of delivering content to Virtual Learning Environments/Learning Management Systems such as Moodle. The advantage of a SCORM package is that it should transfer easily from one VLE/LMS to another. Commercial companies such as text book publishers have begun producing their materials as SCORM, enabling them to include more than just the written content. There are various free (eXe Learning) and bought for (Adobe Captivate) programs which allow tutors to create their own SCORM resources, should they wish. In Moodle 2.0, the SCORM player has had a major overhaul and now provides a much faster environment for users and fixes a range of display issues with the previous player. If we take a brief look at a SCORM activity in Andy's How to Be Happy course we can see this for ourselves.
With the editing turned on, Andy chose Add an activity | SCORM package
He clicked on Choose a file... to get to...