The bitmap constructor has resizing built in.
Bitmap original = (Bitmap)Image.FromFile("DSC_0002.jpg");
Bitmap resized = new Bitmap(original,new Size(original.Width/4,original.Height/4));
resized.Save("DSC_0002_thumb.jpg");
http://msdn.microsoft.com/en-us/library/0wh0045z.aspx
If you want control over interpolation modes see this post.