Ok, so I have a working solution, which could use some love, but really I kinda want to dump it and find something better. I want something where after I crop it, I can manipulate the cropped box, something with handles on it, in-case I don't get the crop exactly how I want. It needs BIG handles because this whole thing is going to be on a touch screen =-0 So what I am looking for is some love for this code, in case I don't find a fitting alternative solution. Or something with handles on it, maybe better coded for 2010

Code:
Imports System.Drawing
Imports System.Drawing.Imaging

Public Class frmMain
    Inherits System.Windows.Forms.Form

    'bitmap to contain the cropped image
    Dim cropBitmap As Bitmap

    'the position and size to crop the image file
    Dim cropX As Integer
    Dim cropY As Integer
    Dim cropWidth As Integer
    Dim cropHeight As Integer

    'create a pen object
    Public cropPen As Pen

    'select a default crop line size
    Public cropPenSize As Integer = 1 '2

    'will contain the dashStyle of the pen
    Public cropDashStyle As Drawing2D.DashStyle = Drawing2D.DashStyle.Solid

    'set a default crop line color
    Public cropPenColor As Color = Color.Aquamarine

    'this is for changing the mouseicon.
    'being used for setting cropping points. 
    'makes it more user friendly
    Public c As Cursors

    Dim Touchless1 As New TouchlessLib.TouchlessMgr


    Private Sub frmMain_Load(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles MyBase.Load
        StartCapture()
    End Sub

    Public Sub StartCapture()
        If Touchless1.Cameras.Count = 0 Then MessageBox.Show("This application needs a webcam") : Return
        Touchless1.CurrentCamera = Touchless1.Cameras.First
        AddHandler Touchless1.CurrentCamera.OnImageCaptured, AddressOf CaptureInvoke
    End Sub

    Private Sub CaptureInvoke()
        picCapture.Image = Touchless1.CurrentCamera.GetCurrentImage()
        DrawBox()
    End Sub

    Private Sub DrawBox()

        Try   'This is the Crop and Draw Box on changing picturebox
            cropX = Convert.ToInt32(txtX.Text)
            cropY = Convert.ToInt32(txtY.Text)
            cropWidth = Convert.ToInt32(txtWidth.Text)
            cropHeight = Convert.ToInt32(txtHeight.Text)

            Dim g As Graphics = picCapture.CreateGraphics

            cropPen = New Pen(cropPenColor, cropPenSize)
            cropPen.DashStyle = cropDashStyle

            g.DrawRectangle(cropPen, cropX, cropY, cropWidth, cropHeight)

        Catch exc As Exception
            MessageBox.Show(exc.Message, " Error", MessageBoxButtons.OK, MessageBoxIcon.Error)
        End Try

    End Sub

    Private Sub btnCrop_Click(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles btnCrop.Click

        Try

            If cropWidth < 1 Then

                'if there are not proper cropping cordinates, then throw a message and exit code
                MessageBox.Show("You need to first select what portion of the image to crop.", " No cropping Cordinates!", MessageBoxButtons.OK, MessageBoxIcon.Error)
                Exit Sub

            End If

            'a rectangle to set the location and size from the source image
            Dim rect As Rectangle = New Rectangle(cropX, cropY, cropWidth, cropHeight)

            'You will need to remember that you will want to decide the width and height of the
            'bitmap according to what the sizemode of the picturebox that contains the image is.
            'If the sizemode = Stretch, then you will want the width/height of the control itself.
            'IF the sizemode = Normal, then you will want the width/height of the IMAGE. So on,
            'and so forth depending on the picturebox controls sizemode. If you do not do this,
            'then you will end up with a completely different cropping image then what you gave
            'cordinates for.
            Dim bit As Bitmap = New Bitmap(picCapture.Image, picCapture.Width, picCapture.Height)

            'create a new bitmap with the width/height values that were specified in the textboxes.
            cropBitmap = New Bitmap(cropWidth, cropHeight)

            'a new Graphics object that will draw on the cropBitmap
            Dim g As Graphics = Graphics.FromImage(cropBitmap)

            'draw the portion of the image that you supplied cropping values for.
            g.DrawImage(bit, 0, 0, rect, GraphicsUnit.Pixel)

            'go ahead and make the new portion of the image a PART of the picturebox instead of
            'just drawing on it. Because if you draw the image through the Graphic class, then
            'you will lose the image whenever the application minimized or got covered up since
            'the image is not persisted on the control.
            picCrop.Image = cropBitmap

        Catch exc As Exception

            MessageBox.Show(exc.Message, " Error", MessageBoxButtons.OK, MessageBoxIcon.Error)

        End Try

        txtX.Text = "0"
        txtY.Text = "0"
        txtWidth.Text = "0"
        txtHeight.Text = "0"

    End Sub

    Private Sub picCapture_MouseDown(ByVal sender As Object, ByVal e As System.Windows.Forms.MouseEventArgs) Handles picCapture.MouseDown

        Try

            If e.Button = MouseButtons.Left Then

                cropX = e.X
                cropY = e.Y

                cropPen = New Pen(cropPenColor, cropPenSize)
                cropPen.DashStyle = cropDashStyle

                'change the mouse pointer to the cross cursor which kinda helps when
                'sizing for the crop
                Cursor = c.Cross

            End If

        Catch exc As Exception

            MessageBox.Show(exc.Message, " Error", MessageBoxButtons.OK, MessageBoxIcon.Error)

        End Try

    End Sub

    Private Sub picCapture_MouseMove(ByVal sender As Object, ByVal e As System.Windows.Forms.MouseEventArgs) Handles picCapture.MouseMove

        Try

            If picCapture.Image Is Nothing Then Exit Sub

            If e.Button = MouseButtons.Left Then

                'clear the previous drawn crop lines
                picCapture.Refresh()

                'need to take into count where the mouse started at
                'and calculate the new position
                cropWidth = e.X - cropX
                cropHeight = e.Y - cropY

                'draw the outline for the cropping
                picCapture.CreateGraphics.DrawRectangle(cropPen, cropX, cropY, cropWidth, cropHeight)

                'update the coordinates in the textboxes
                txtX.Text = cropX
                txtY.Text = cropY
                txtWidth.Text = cropWidth
                txtHeight.Text = cropHeight

            End If

            'release as much memory as possible
            GC.Collect()

        Catch exc As Exception

            'this is a error when the cropping parameters are less than 1
            If Err.Number = 5 Then Exit Sub

            MessageBox.Show(exc.Message, " Error", MessageBoxButtons.OK, MessageBoxIcon.Error)

        End Try

    End Sub

    Private Sub picCapture_MouseUp(ByVal sender As Object, ByVal e As System.Windows.Forms.MouseEventArgs) Handles picCapture.MouseUp

        Try

            'change the mouse pointer back to the default cursor
            Cursor = c.Default

        Catch exc As Exception

            MessageBox.Show(exc.Message, " Error", MessageBoxButtons.OK, MessageBoxIcon.Error)

        End Try

    End Sub
End Class
The crop code originates from this: http://www.planet-source-code.com/vb...3437&lngWId=10