Arduino Midi Keyboard Synthesizer

I have a electronic casio keyboard with midi input and output, and I have seen schematics for attaching the cables to Arduino. Would it be possible to alter the sound of the notes played on the keyboard with the arduino, such as with a potentiometer or light resistor as http://code.google.com/p/tinkerit/wiki/Auduino does? Even further, with something such as the arduino wave shield, would it be possible to assign different wave files to different keys? And, if they are possible, does it require an active computer connection to do so? Thank you!