First you need to reference System.Drawing.dll if it's not reference by default. Then put these in the referencing section:
using System.Drawing;
using System.Drawing.Imaging;
using System.Drawing.Imaging;
In my test program I did this:
Image img = Image.Fromfile("... source file address");
Size newSize = Size( img.Width/2, img.Height/2);
Image newImg = new Bitmap( img, newSize);
newImg.Save("... new file address", ImageFormat.Jpeg);
img.Dispose();
newImg.Dispose();
And as simple as that, would read in the source image file of any format, and save to the new file address in jpeg format and half the original size. Simple enough!!
Of course, if image quality is a concern, using the Graphics object should yield better results.