I had the same problem and apparently is solved now, despite this and some other gdi+ exceptions are very misleading, I found that actually the problem was that the parameter being sent to a Bitmap constructor was not valid. I have this code:
using (System.IO.FileStream fs = new System.IO.FileStream(inputImage, System.IO.FileMode.Open, System.IO.FileAccess.ReadWrite))
{
try
{
using (Bitmap bitmap = (Bitmap)Image.FromStream(fs, true, false))
{
try
{
bitmap.Save(OutputImage + ".bmp", System.Drawing.Imaging.ImageFormat.Bmp);
GC.Collect();
}
catch (Exception ex)
{
throw ex;
}
}
}
catch (ArgumentException aex)
{
throw new Exception("The file received from the Map Server is not a valid jpeg image", aex);
}
}
The following line was causing an error:
Bitmap bitmap = (Bitmap)Image.FromStream(fs, true, false)
The file stream was built from the file downloaded from the Map Server. My app was sending the request incorrectly to get the image, and the server was returning something with the jpg extension, but was actually a html telling me that an error ocurred. So I was taking that image and trying to build a Bitmap with it.
The fix was to control/ validate the image for a valid jpeg image.
More info on a post I wrote about it:Parameter is not valid GDI+ error
Hope it helps!