I have an executable embedded into my app resources. ATM I use assembly reflection to extract the executable to its own file and then start the executive using process,START
Here's what I gather from your question, and your comments:
The answer to that is: yes
However, the answer to that is also it is very, very, hard
What you have to do is, and note that I do not know all the details about this since I don't do this, but anyway:
I'm assuming your question is "can I do 1 and 8", and the answer to that is no.