If you're talking about the DocuColor 240 then yes, you can do what you are asking. However, you don't want to do it quite the way that you are planning. If I understand what you're trying to do, you should use the Booklet Mode feature which is located on the Output Format tab in the Copy Service Screen. Since your document is duplex, you'll just need to change the input from the default of simplex to duplex (1 -> 2) to duplex to duplex (2 -> 2).
i have a 208 page 2 sided document
i want to scan it (using the 240 scanner) and output two up on 11 x 17 then cut it in half to 8.5 x 11 (Collated) Can you do this??