Não fez isso antes (exceto em javaolha comoSteve McLeod fixo), então obviamente eu sou péssimo. Aqui, 64 pixels em torno da posição atual do mouse são desenhados um pouco maiores em um formulário. O problema é que é "meio que" lento, e não tenho idéia por onde começar a consertar.

Além disso, criei um encadeamento de timer, que constantemente chama gráficos de atualização quando finalizados e um pouco de fps como texto, para mostrar realmente o quão rápido as coisas são desenhadas.

Exemplo de imagem: (a imagem é da letra 'a' em "IntelliTrace" no Microsoft VS2010)

Exemplo de origem:

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);
        }
    }
}

Após as alterações que fiz, este é ~ 98% mais 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);
        }
    }
}