I am creating a sharepoint 2010 designer workflow (Approval). I want to deploy this to the live server for the project I am on. Is it possible to produce a wsp package? How can I deploy this unit of customisation?
You need to create Reusable Workflows. It basically allows you to save the workflow as a template resulting in a .wsp file which ultimately can be brought to Visual Studio for deployment.
Check out this excellent blog from Geoff Varosky for step by step details - http://sharepointyankee.com/2010/12/11/options-for-deploying-reusable-workflows-in-sharepoint-2010/