I have an application where I am taking a bitmap and compressing it using a GZipStream and sending it over a socket, all in memory. I have tracked down the dirty scumbag mem
You should set the bitmap to null when done working with it, after disposal.
Also, you may want to invoke the Garbage Collector after disposal of the Bitmap (even though it is an expensive operation): GC.Collect();
Bitmap holds unmanaged resources - the GC is not always "on the ball" with these. Here is an interesting link regarding the Bitmap class (from the perspective of the compact framework): http://blog.opennetcf.com/ctacke/PermaLink,guid,987041fc-2e13-4bab-930a-f79021225b74.aspx