...based on what info you give it in the query string?
For example, you could do something like:
<img src="http://website.com/?original=http://something.com/test.jpg&height=100&width=100" />
And then website.com would take test.jpg and resize/crop it down to 100x100 and output it on the fly. Does something like this exist? If not, I want to make it.