Arduino varibale sleep timer

My questions are more general at this point and I am trying to figure out what might work before I put a lot of time into it. My goal is to avoid putting weeks of effort just to realize it cant possibly work and I need additional hardware such as a DS1307 timer. My basic question is does this idea sound like it will work? I am using a small battery so power save sleep mode is an important feature for me. Do you think I can get the alarm feature to create an interrupt to wake the Arduino from power save mode? If not can I somehow convert serial input time variables into delays which can be used as interrupts to wake the system?