I tried what you suggested. I opened two streams and a copy of the jpg file
was created. this is what i tried.

myFileStream = new
FileStream(m_strFileName,FileMode.Open,FileAccess.Read,FileShare.Read);//an
instance of FileStream
myOutStream = new
FileStream(m_strFileName.Replace("DSC","ABH"),FileMode.OpenOrCreate,FileAcce
ss.Write,FileShare.None);
myOutStream.WriteByte(); myOutStream.Close(); myFileStream.Close();

2) Yes I can send other kind of data successfully. I am able to send text
messages to and fro client and server.
Following is the code snippet of client and server.

Server

FILE *pFile = NULL;//file pointer
BYTE recvbuf[1024];
pFile = fopen(strFileName,"w");//opens a file for writing if the file does
exist it will empty it
int bytesRecv = SOCKET_ERROR;//initializes to an error value.
//this a while loop that keep reading bytes till the terminating symbol is
not found in the stream
while( bytesRecv == SOCKET_ERROR || !boTermFound)
{//keep reading and writing bytes till you read the end of the message
 bytesRecv = recv(AcceptSocket, (char*)recvbuf, 1024, 0 );
 //have to check weather the last n bytes contain the terminator string
 if (bytesRecv == 0 || bytesRecv == WSAECONNRESET )
 {
  AfxMessageBox( "Connection Closed");
  return false;
  break;
 }
 boTermFound = CheckForTerminator(strTermString,recvbuf,bytesRecv);
 fwrite(recvbuf, sizeof(BYTE),bytesRecv, pFile);
}
fclose(pFile)

Client (.net compact c#)
-------------------------

FileStream myFileStream;
myFileStream = new
FileStream(m_strFileName,FileMode.Open,FileAccess.Read,FileShare.Read);//an
instance of FileStream
byte[] b = new byte[myFileStream.Length];//create a byte array to store
for(long i=0;i<myFileStream.Length;i++)
b[i] = (byte)myFileStream.ReadByte();
myFileStream.Close();
_socket.BeginSend(b, 0, b.Length,
SocketFlags.None, null, null);
// send the terminator
_asyncEvent.Reset();
_socket.BeginSend(Network.TerminatorBytes, 0,
Network.TerminatorBytes.Length, SocketFlags.None, _sendCallback, true);
//this is just code that indicates termination of data.

This is becoming a serious problem. My whole project depends on
succcessfully able to transfer jpg images. Please look into this.

Regards, Abhishek