I've just been trying to use the above in my code and I believe that there is a problem with the Bitmap2BitmapImage function (and possibly the other one as well).
using (MemoryStream ms = new MemoryStream())
Does the above line result in the stream being disposed of? Which means that the returned BitmapImage loses its content.
As I'm a WPF newbie I'm not sure that this is the correct technical explanation, but the code didn't work in my application until I removed the using directive.