I have been looking for a solution for this all over the web and it took me a couple of hours to figure it out. Finally I did it. So, here's my code to upload a picture file using the fileupload control, resize the file and then store it to a SQL Server database.

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  If FleUpload.HasFile Then
            Dim fileName As String = Server.HtmlEncode(FleUpload.FileName)
            Dim extension As String = System.IO.Path.GetExtension(fileName)
            If (extension.ToUpper = ".JPG") Or (extension.ToUpper = ".GIF") Then

                '**** Resize image section ****
                Dim image_file As System.Drawing.Image = System.Drawing.Image.FromStream(FleUpload.PostedFile.InputStream)
                Dim image_height As Integer = image_file.Height
                Dim image_width As Integer = image_file.Width
                Dim max_height As Integer = 120
                Dim max_width As Integer = 160


                image_height = (image_height * max_width) / image_width
                image_width = max_width

                If image_height > max_height Then
                    image_width = (image_width * max_height) / image_height
                    image_height = max_height
                Else
                End If


                Dim bitmap_file As New Bitmap(image_file, image_width, image_height)
                Dim stream As New System.IO.MemoryStream

                bitmap_file.Save(stream, System.Drawing.Imaging.ImageFormat.Jpeg)
                stream.Position = 0

                Dim data(stream.Length) As Byte
                stream.Read(data, 0, stream.Length)
                '**** End resize image section ****


                Dim myConn As New SqlConnection(ConfigurationManager.ConnectionStrings("cs").ConnectionString)
                Dim mycmd As New SqlCommand("se_equipmentimages_insert", myConn)
                mycmd.CommandType = CommandType.StoredProcedure

                mycmd.Parameters.AddWithValue("@equipment_id", id)
                mycmd.Parameters.AddWithValue("@image_file", data)

                Try
                    myConn.Open()
                    mycmd.ExecuteNonQuery()
                Catch ex As Exception
                Finally
                    myConn.Close()
                End Try

            Else
                lblError.Text = "Please only upload .jpg or .gif files"
                lblError.Visible = True
            End If
        Else
            lblError.Text = "No file selected"
            lblError.Visible = True
        End If

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EDIT: I found an online converter so not sure if this code would work, 
but could you please tell me where I am supposed to start the if 
statement?

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{
    if (FleUpload.HasFile) {
        string fileName = Server.HtmlEncode(FleUpload.FileName);
        string extension = System.IO.Path.GetExtension(fileName);
        if ((extension.ToUpper == ".JPG") | (extension.ToUpper == ".GIF")) {
            
            //**** Resize image section ****
            System.Drawing.Image image_file = System.Drawing.Image.FromStream(FleUpload.PostedFile.InputStream);
            int image_height = image_file.Height;
            int image_width = image_file.Width;
            int max_height = 120;
            int max_width = 160;
            
            
            image_height = (image_height * max_width) / image_width;
            image_width = max_width;
            
            if (image_height > max_height) {
                image_width = (image_width * max_height) / image_height;
                image_height = max_height;
            }
            else {
            }
            
            
            Bitmap bitmap_file = new Bitmap(image_file, image_width, image_height);
            System.IO.MemoryStream stream = new System.IO.MemoryStream();
            
            bitmap_file.Save(stream, System.Drawing.Imaging.ImageFormat.Jpeg);
            stream.Position = 0;
            
            byte[] data = new byte[stream.Length + 1];
            stream.Read(data, 0, stream.Length);
            //**** End resize image section ****
            
            
            SqlConnection myConn = new SqlConnection(ConfigurationManager.ConnectionStrings("cs").ConnectionString);
            SqlCommand mycmd = new SqlCommand("se_equipmentimages_insert", myConn);
            mycmd.CommandType = CommandType.StoredProcedure;
            
            mycmd.Parameters.AddWithValue("@equipment_id", id);
            mycmd.Parameters.AddWithValue("@image_file", data);
            
            try {
                myConn.Open();
                mycmd.ExecuteNonQuery();
            }
            catch (Exception ex) {
            }
            finally {
                myConn.Close();
                
            }
        }
        else {
            lblError.Text = "Please only upload .jpg or .gif files";
            lblError.Visible = true;
        }
    }
    else {
        lblError.Text = "No file selected";
        lblError.Visible = true;
    }
}

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