Yes, this is not a problem. Just open the image and set the coordenate it will start at using canvas:
Then, for moving the image you have to create functions:
import graphics, key_codes
x = -200.0
y = -80.0
img = 'E:\\Images\\test.jpg'
And finally set the keys for moving:
But I guess you have to find a way to open this image first, since you're getting KErrNotFound for some reason. Although, this might support you after opening the file.
Hope it helps,