Is it possible to have a element within another element? I know i can layer them, but is this possible -
You might want to consider doing a virtual embedding by translating to various positions on your canvas.
Here's an example of doing this:
http://marketimpacts.com/storage/9781118385357%20ls0702%20Complex%20Objects.htm
It's from:
http://www.amazon.com/HTML5-Canvas-For-Dummies-Cowan/dp/1118385357/ref=cm_cmu_up_thanks_hdr