Are you working with a pure standard DICOM File? I've been maintainning a DICOM parser for over a two years and I came across some realy strange DICOM files that didn't completely fulfill the standard (companies implementing their "own" twisted standard DICOM files) . flush you byte array into a file and test whether your image viewer(irfanview, picassa or whatever) can show it. If your code is working with a normal JPEG stream then from my experience , 99.9999% chance that this simply because the file voilate the standard in some strange way ( and believe me , medical companies does that a lot)
Also note that DICOM standard support several variants of the JPEG standard . could be that the Bitmap class doesn't support the data you get from the DICOM file. Can you please write down the transfer syntax?
You are welcome to send me the file (if it's not big) yossi1981@gmail.com , I can check it out , There was a time I've been hex-editing DICOM file for a half a year.