Is this how Halo 4 is supposed to work?

ok, well my xbox is not allowing itself to go online. Thats something I will have to fix later.

HOWEVER, when I went to forge offline, each time I would start the game it would keep going to the main menu.

Is this how Halo 4 is designed? where you cant do ANYTHING unless you are online?

No, you can forge while offline, there must be something wrong with your disc or xbox.