Adjusting images for image size/file size

I'm working on an ecommerce site and want to work from a single source image for the items.

Using some of the ideas I've talked about before I can resize the images on the fly, but I wanted to also set a maximum file size for the images (after all, if I'm making a 25x25 thumbnail, it shouldn't be over 5k)

I'm saving a memory stream as a jpg, and torquing down the Encoder.Quality setting until the stream is less than the number of bytes I'm trying to fit in.

This is working really well, check out this to see (I'm also adding rounded corners to the images)