Got a question. I have images hosted on my server. I already know of the method when an image is uploaded to resize it and save, but I have another thought in mind.
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I assume you can 'control' the urls to the resized images, so for example the full-sized image might be referenced as
the thumbnail could be to an ASPX or ASHX like
?
This article on CodeProject - Dynamic Image Resize seems to have exactly the source code you are looking for (and although it's in VB, it shouldn't be hard to port if you're a C# person). Hope that helps.
Finally, I'd encourage you consider the various forms of caching (both using Http-Headers, to ensure the images are cached at the client or proxy whenever possible; and using built-in ASP.NET features to avoid unnecessary processing of the same images over-and-over).
Although you'll be saving disk-quota, you're effectively slowing down every other page/request... just a thought.