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Email to Case Basics

I have developed a website in vb.net in which I have displayed the data from salesforce and new cases can be logged. Now the client has asked to embed the "Email-to-Case" functionality in as well. I have read the forum discussions and downloaded the Email-to-Case Agent.
O have also studied the articl on http://www.sforce.com/resources/tn-12.jsp Uptill now I have understood that some how the emails are converted into cases. I have created new cases from my website but the logic of Email-to-Case is difficult to understand. I donot want to manually extract the emails and then create cases one by one. Rather a mechanism is required which would extract emails for me, matches the senderemail addres with a contacts email address and automatically log new cases.
 Does the slesforce currently provides any functionality for that ? I would just set a routing email address to receive the emails. Or is there some sort of development work required ?