I've been trhu this before. I couldnt find any automated solution, and so i made all by myself.
First you'll need to get MousePosition and change Cursor whenever the pointer is on the PictureBox edge. Then you'll need to draw a rect object to show what will be the new size of your pictureBox.
After that just set the Size property of the PictureBox and call invalidate so the PictureBox can redraw itself in the window again.
Remenber to set the ImageSize property on the PictureBox to ImageStrech to make things easier.
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Bruno