It is certainly possible to create the image in progressive qualities from the same stream though some clever technical co-operation from both sides would be nessecary.
Are you grabbing pictures from a server in your control or from other url's?
If you control the server you could query a php script with image quality parameters and get them in succession though personally I think that's a waste of bandwidth.
Why not just indicate the image is loading and put a place holder image, and when the high quality image is downloaded just replace it?
I'm sorry i couldn't help you by telling you how to do it the first way although it's something I may try to implement myself in some spare time.