I actually set up a tool on my site that creates Latex images from Latex code, like on these forums, http://www.bloo.us/academic/latex/ . The translator, the tool that actually builds the image from the Latex is built with ASP.NET which just wraps around dvipng.exe. Basically the ASP.NET process creates a latex source file from the user's code and passes it to the dvipng.exe which creates the png image.
I'm building a Blog that will support Latex. Basically i did a webservice with functions like latexToGif(<latex code>), latexToHtml(<latex code>), latexToPng(<latex code>), all of which return the path to the image created. Then it's easy. When you process a blog post you look for tags such as {tex}{/tex} like in these forums, retrieve the latex code, pass it to the webservice, which compiles the image and returns the path, and substitute the whole {tex}...{/tex} tag with an html image tag, <img src="image returned from web service">.
I don't recommend dynamically generating the latex images as the users requests them (such as with some cgi alternatives), it's much more efficiently to do only once.