No he hecho esto antes (excepto en java, mira cómoSteve McLeod lo arreglé), así que obviamente lo chupo. Aquí, 64 píxeles alrededor de la posición actual del mouse se dibujan un poco más grandes en un formulario. El problema es que es 'lento' y no tengo idea de por dónde empezar a arreglar.

Además de eso, hice un hilo de temporizador, que llama constantemente a los gráficos de actualización cuando está terminado y a un pequeño fps como texto, para mostrar realmente qué tan rápido se dibujan las cosas.

Ejemplo de imagen: (La imagen es de la letra 'a' en "IntelliTrace" en Microsoft VS2010)

Ejemplo de fuente:

using System;
using System.Collections.Generic;
using System.ComponentModel;
using System.Data;
using System.Drawing;
using System.Linq;
using System.Text;
using System.Windows.Forms;
using System.Runtime.InteropServices;

namespace Zoom
{
    public partial class Form1 : Form
    {
        static class dllRef
        {
            [DllImport("user32.dll")]
            [return: MarshalAs(UnmanagedType.Bool)]
            static extern bool GetCursorPos(out Point lpPoint);

            [DllImport("user32.dll")]
            static extern IntPtr GetDC(IntPtr hwnd);

            [DllImport("user32.dll")]
            static extern Int32 ReleaseDC(IntPtr hwnd, IntPtr hdc);

            [DllImport("gdi32.dll")]
            static extern uint GetPixel(IntPtr hdc, int nXPos, int nYPos);

            // from http://www.pinvoke.net/default.aspx/gdi32/GetPixel.html
            static public System.Drawing.Color getPixelColor(int x, int y) {
                IntPtr hdc = GetDC(IntPtr.Zero);
                uint pixel = GetPixel(hdc, x, y);
                ReleaseDC(IntPtr.Zero, hdc);
                Color color = Color.FromArgb((int)(pixel & 0x000000FF),
                             (int)(pixel & 0x0000FF00) >> 8,
                             (int)(pixel & 0x00FF0000) >> 16);
                return color;
            }
            static public System.Drawing.Point getMousePosition() {
                Point p = new Point();
                GetCursorPos(out p); 
                return p;
            }
        }

        public Form1() {
            InitializeComponent();
            this.Size = new Size(400,400);
            this.Text="Image zoom";
            this.Location = new Point(640, 0);
            this.image = new Bitmap(320, 320);
            this.timeRef = DateTime.Now;
            this.BackColor = Color.White;
            Timer t = new Timer();
            t.Interval = 25;
            t.Tick += new EventHandler(Timer_Tick);
            t.Start();
        }

        public void Timer_Tick(object sender, EventArgs eArgs) {
            this.Form1_Paint(this, new PaintEventArgs(this.CreateGraphics(), new Rectangle(0, 0, this.Width, this.Height)));
        }

        private bool isdone = true;
        private int iter = 0;
        private Bitmap image;
        private DateTime timeRef;
        private void Form1_Paint(object sender, PaintEventArgs e) {
            if (isdone) {
                isdone = false;
                int step = 40;
                Point p = dllRef.getMousePosition();
                Pen myPen = new Pen(Color.Gray, 1);
                SolidBrush myBrush = null;
                Bitmap image2 = new Bitmap(320, 340);

                Graphics gc = Graphics.FromImage(image2);

                for (int x = 0; x < 8; x++) {
                    for (int y = 0; y < 8; y++) {
                        myBrush = new SolidBrush(dllRef.getPixelColor(p.X - 4 + x, p.Y - 4 + y));
                        gc.FillEllipse(myBrush, x * step, y * step, step - 3, step - 3);
                        gc.DrawEllipse(myPen, x * step, y * step, step - 3, step - 3);
                    }
                }
                StringBuilder sb = new StringBuilder();
                sb.Append(iter)
                        .Append(" frames in ")
                        .Append(String.Format("{0:0.###}", ((DateTime.Now-this.timeRef).TotalMilliseconds)/1000))
                        .Append("s.");
                gc.FillRectangle(new SolidBrush(this.BackColor), new Rectangle( 0, 320, 320, 40));
                gc.DrawString(sb.ToString(),new Font("Arial", 12),new SolidBrush(Color.Black), 10, 320);
                gc.Dispose();
                isdone = true;
                iter++;
                image = image2;
            }
            e.Graphics.DrawImage(image, 35f, 15f);
        }
    }
}

Después de los cambios que hice, este es ~ 98% más rápido:

using System;
using System.Collections.Generic;
using System.ComponentModel;
using System.Data;
using System.Drawing;
using System.Linq;
using System.Text;
using System.Windows.Forms;
using System.Runtime.InteropServices;


namespace Zoom
{
    public partial class Form1 : Form
    {
        static class dllRef
        {
            [DllImport("user32.dll")]
            [return: MarshalAs(UnmanagedType.Bool)]
            static extern bool GetCursorPos(out Point lpPoint);

            [DllImport("user32.dll")]
            static extern IntPtr GetDC(IntPtr hwnd);

            [DllImport("user32.dll")]
            static extern Int32 ReleaseDC(IntPtr hwnd, IntPtr hdc);

            [DllImport("gdi32.dll")]
            static extern uint GetPixel(IntPtr hdc, int nXPos, int nYPos);

            // from http://www.pinvoke.net/default.aspx/gdi32/GetPixel.html
            static public System.Drawing.Color getPixelColor(int x, int y) {
                IntPtr hdc = GetDC(IntPtr.Zero);
                uint pixel = GetPixel(hdc, x, y);
                ReleaseDC(IntPtr.Zero, hdc);
                Color color = Color.FromArgb((int)(pixel & 0x000000FF),
                             (int)(pixel & 0x0000FF00) >> 8,
                             (int)(pixel & 0x00FF0000) >> 16);
                return color;
            }
            static public System.Drawing.Point getMousePosition() {
                Point p = new Point();
                GetCursorPos(out p); 
                return p;
            }
        }

        public Form1() {
            InitializeComponent();
            this.Size = new Size(400,400);
            this.Text="Image zoom";
            this.Location = new Point(640, 0);
            this.image = new Bitmap(320, 340);
            this.timeRef = DateTime.Now;
            this.BackColor = Color.White;
            Timer t = new Timer();
            t.Interval = 25;
            t.Tick += new EventHandler(Timer_Tick);
            t.Start();
        }

        public void Timer_Tick(object sender, EventArgs eArgs) {
            this.Form1_Paint(this, new PaintEventArgs(this.CreateGraphics(), new Rectangle(0, 0, this.Width, this.Height)));
        }

        private bool isdone = true;
        private int iter = 0;
        private Bitmap image;
        private DateTime timeRef;
        private void Form1_Paint(object sender, PaintEventArgs e) {
            if (isdone) {
                isdone = false;
                int step = 40;
                Point p = dllRef.getMousePosition();
                SolidBrush myBrush = null;
                Bitmap hc = new Bitmap(8, 8);

                using (Pen myPen = new Pen(Color.Gray, 1))
                using (Graphics gc = Graphics.FromImage(image))
                using (Graphics gf = Graphics.FromImage(hc))
                {
                    gf.CopyFromScreen(p.X - 4, p.Y - 4, 0, 0, new Size(8, 8),
                            CopyPixelOperation.SourceCopy);

                    for (int x = 0; x < 8; x++)
                    {
                        for (int y = 0; y < 8; y++)
                        {
                            myBrush = new SolidBrush(hc.GetPixel(x, y));
                            gc.FillEllipse(myBrush, x * step, y * step, step - 3, step - 3);
                            gc.DrawEllipse(myPen, x * step, y * step, step - 3, step - 3);
                        }
                    }

                    double ts = ((DateTime.Now - this.timeRef).TotalMilliseconds) / 1000;
                    StringBuilder sb = new StringBuilder();
                    sb.Append(++iter).Append(" frames in ").Append(String.Format("{0:0.###}", ts)).Append("s.");

                    gc.FillRectangle(new SolidBrush(this.BackColor), new Rectangle(0, 320, 320, 40));
                    gc.DrawString(sb.ToString(), new Font("Arial", 12), new SolidBrush(Color.Black), 10, 320);

                }

                isdone = true;
            }
            e.Graphics.DrawImage(image, 35f, 15f);
        }
    }
}