I've had and, answered a similar question here: Graphics wrong image interpolation in .Net, but in short it seems like different platforms use different internal algorithms (or perhaps it's an internal rounding problem in GDI).
Anyway, the problem is in the settings. So try the following:
Using s As Bitmap = DirectCast(Bitmap.FromFile(PhysicalPath), Bitmap)
Dim scale As Double = Math.Min(140.0 / s.Width, 140.0 / s.Height)
Using d As New Bitmap(CInt(Math.Floor(scale * s.Width)), CInt(Math.Floor(scale * s.Height)), System.Drawing.Imaging.PixelFormat.Format24bppRgb)
Using dg As Graphics = Graphics.FromImage(d)
dg.InterpolationMode = System.Drawing.Drawing2D.InterpolationMode.HighQualityBicubic
dg.SmoothingMode = SmoothingMode.HighQuality
dg.PixelOffsetMode = PixelOffsetMode.HighQuality
dg.CompositingQuality = CompositingQuality.HighQuality
dg.Clear(Color.White)
dg.DrawImage(s, New Rectangle(0, 0, d.Width, d.Height), New Rectangle(0, 0, s.Width, s.Height), GraphicsUnit.Pixel)
End Using
Dim jpegArgs As New EncoderParameters(3)
jpegArgs.Param(0) = New EncoderParameter(System.Drawing.Imaging.Encoder.Quality, 100L)
jpegArgs.Param(1) = New EncoderParameter(System.Drawing.Imaging.Encoder.ScanMethod, CInt(EncoderValue.ScanMethodInterlaced))
jpegArgs.Param(2) = New EncoderParameter(System.Drawing.Imaging.Encoder.RenderMethod, CInt(EncoderValue.RenderProgressive))
Dim Codecs As ImageCodecInfo() = ImageCodecInfo.GetImageEncoders()
Dim jpegParams As ImageCodecInfo = Nothing
'#### Set jpeg as the output codec
For Each Codec As ImageCodecInfo In Codecs
If Codec.MimeType = "image/jpeg" Then
jpegParams = Codec
End If
Next
Response.Clear()
Response.ContentType = "image/jpeg"
d.Save(Response.OutputStream, jpegParams, jpegArgs)
End Using
End Using
Good luck!