You could actually "control" the foreign website. Load the HTML with xmlHttpRequest, make your changes, add body base href so that pics load properly off that site, write to your iframe's srcdoc
attribute with
document.getElementById('myiframe').setAttribute('srcdoc',myhtml)
and Bob's your uncle. Unless a lot of horrible things happen, such as:
• srcdoc not supported in old IEs => implement the data getting and mangling in a server-side script,
• remote site won't send auxiliary files to the wrong referer => you're SOL.