Yes you can. Actually I've done that, you can see in www.selered.com the
left vertical navigation bar is a web user control

I guess your control has two levels of navigation hieracy

You can seek this steps:
1 You can create a web control, inside you can put a repeater will all the
features you need, but make sure your repeater is populated by a dataset
public property (the second navigation level that reads the content from a
first level navigation field/id) in your web control. Also the image on the
top or your web control is referenced by another public property.
2 On your web form, you populate a repeater, datagrid, datalist, etc with a
dataset (or similar), containing the first navigation level. Make sure that
dataset has the field that is needed to get the second dependant level
3. Declare a public function in your web control, that recieves the first
navigation field value and return the dataset containing the whole second
level navigation.
4. In the item template of your repeater/datagrid/etc, insert the custom
control tag of your web user control, and declare the dataset public
property like this:

<myns:uxtag id="mywebusercontrol" runat="server"
MyDataSetProperty='<%#MyPublicFunction(DataBinder.Eval(Container.DataItem,
"myfield")%>'  />

this will resolve the dataset at "render-time"

5. Fill your repeater/datagrid and "DataBind" it...

Another more simple way to acomplish this is using xml/xslt in a
LiteralControl... he he... choose the one you like most.... I've done both
of them, the xsl is only when I don't need to generate postbacks, the web
user control solution is more in a extense web app with reusable components
that generates events... etc.

If you want that you have to create a custom control, which is more
complicated but more user-friendly at design time.

Hope I have been clear enough, enjoy!