Working Solution :
For Resize image with size lower then 100Kb
WriteableBitmap bitmap = new WriteableBitmap(140,140);
bitmap.SetSource(dlg.File.OpenRead());
image1.Source = bitmap;
Image img = new Image();
img.Source = bitmap;
WriteableBitmap i;
do
{
ScaleTransform st = new ScaleTransform();
st.ScaleX = 0.3;
st.ScaleY = 0.3;
i = new WriteableBitmap(img, st);
img.Source = i;
} while (i.Pixels.Length / 1024 > 100);
More Reference at http://net4attack.blogspot.com/