Its possible with the Outlook Object Model.
Retrieving the sender address is trivial, look-up... depends on what you want to do.
With HTML mails it shouldn't be too hard to insert the picture, and you should be able to convert the other body formats into HTML.
Try it out with VBA and build a stand-alone AddIn (with VSTO or whatever) if the prototype works.
Update: In the redemption examples you can find the example 'Create an HTML message with an embedded image'.
This effectively does what you are looking for - you just need to change it to work with an existing message and, if you don't want to depend on redemption, port it to VSTO/VBA/COM AddIn/whatever.