Ciao,
yes, it is possible.
Not the same sensor, but You can read this
Sensing Orientation With The ADXL335 + Arduino
http://bildr.org/2011/04/sensing-orientation-with-the-adxl335-arduino/
Accelerometer and Gyro Buying Guide
http://www.sparkfun.com/tutorials/167
Arduino ADC are 10 bit, maybe You can use an ADC IC with better resolution, for example 16 bits.
Ciao,
Marco.