We analyse a unique set of time-resolved echelle spectra of the dwarf nova IP Peg, obtained at ESOs NTT with EMMI. The dataset covers the wavelength range of 4000-7500A and shows Balmer, HeI, HeII and heavier elements in emission. IP Peg was observed one day after the peak of an outburst. The trailed spectra, spectrograms and Doppler maps show characteristics typical of IP Pegasi during the early stages of its outburst. The high-ionisation line of HeII 4686A is the most centrally located line and has the greatest radial extension compared to the HeI lines. The Balmer lines extend from close to the white dwarf up to approximately 0.45 times R_L, with the outer radius gradually increasing when moving from H delta to H alpha. The application, for the first time, of the modulation Doppler tomography technique, maps any harmonically varying components present in the system configuration. We find, as expected, that part of the strong secondary star emission in Balmer and HeI lines is modulated predominantly with the cosine term, consistent with the emission originating from the irradiated front side of the mass-donor star, facing the accreting white dwarf. For the Balmer lines the level of the modulation, compared to the average emission, decreases when moving to higher series. Emission from the extended accretion disk appears to be only weakly modulated, with amplitudes of at most a few percent of the non-varying disk emission. We find no evidence of modulated emission in the spiral arms, which if present, is relatively weak at that our signal-to-noise ratio was good enough to put a lower detection limit of any modulated emission at 5--6%. Only in one arm of the HeII 4686A line, is there a possibility of modulated emission, but again, we cannot be sure this is not caused by blending with the nearby Bowen complex of lines.