Here is what I have; I will be headed overseas with work to where there are little "creature comforts". The folks over there are clamoring for some way to watch movies, other than on their toughbooks.

I can take a projector with me. It will probably only have RCA inputs. However, I will try to sucker the boss into springing for something to get morale up...

Internet is sporadic. I will need something that can operate without a reliable internet connection.

I need some sort of sound solution. No, I don't need 7.1, but, once again, they are tired of earbuds or toughbook speakers.

Can you guys recommend something? The Roku 2 XS looks like a good option, since it has a USB port. HOWEVER, I dont know if it requires internet to operate when just playing movies from a USB stick.

What options do I have?

I have the Roku and I am pretty sure it will play movies off the USB without an internet connection.

I picked up a digital picture frame at goodwill that plays usb/sd movies, there are led sd projectors on egay, boombox with 1/8"  or rca for sound?

I have a Sony blu-ray player with a USB input, and I bought a Seagate Free Agent for my parents a few years ago.  I've played video from USB on both of these with no internet connectivity.  I remember for certain that the Free Agent had RCA outputs, don't remember for sure about my blu-ray player.
 

Usually there will be a couple of portable hard drives full of movies floating around the guys that are over.  
I keep a portable 1tb with me.

eta.  Also took a few RCA cables and a iPod hook up to USB

I think this is why this piece of gear is being requested.  Its worth a few bucks out of my pocket to keep them happy...

I tried the Roku and ended up going with a WD Live instead.  Better product, built in HD, great support for formats.