This doesn'tdo the ellipsis like you wanted, but it seems to work pretty well: 

    public class MyCreationFilter : IUIElementCreationFilter
    {
        #region IUIElementCreationFilter Members

        public void AfterCreateChildElements(UIElement parent)
        {
            if (parent is EditorWithTextUIElement)
            {
                ImageUIElement imageUIElement = parent.GetDescendant(typeof(ImageUIElement)) as ImageUIElement;

                if (imageUIElement != null)
                {
                    imageUIElement.Rect = new Rectangle(
                        imageUIElement.Rect.X,
                        imageUIElement.Rect.Y,
                        imageUIElement.Image.Width,
                        imageUIElement.Rect.Height);
                }
            }
        }

        public bool BeforeCreateChildElements(UIElement parent)
        {
            return false;
        }

        #endregion
    }

 Thank's for the quick reply 

I've tried the code you posted but it doesn't seem to do anything at all? I stepped through the code and the creation filter does get hit but the image still shrinks to fit the cell. Maybe I missed something? I tried feeding different sizes to the new rectangle you are creating to see the impact it would have on the cell image, again nothing seemed to change at all.

Are you setting the Image on the cell? Or are you using ImageBackground (or BackgroundImage, I always forget which way it is)? 

Are you cells using a different editor like maybe you are using masking or a combo? 

aUGRow.Cells["flags"].Value = GetCombinedImage(wSignatureNeeded);  //GetCombinedImage returns a Bitmap.

 The flag column is configured as follows:

column.DataType = typeof(Bitmap);

column.CellAppearance.ImageVAlign = Infragistics.Win.VAlign.Middle;

column.FilterEvaluationTrigger = FilterEvaluationTrigger.OnEnterKey;

column.FilterOperatorDropDownItems = FilterOperatorDropDownItems.Equals | FilterOperatorDropDownItems.Contains | FilterOperatorDropDownItems.DoesNotContain;

column.SortComparer = new FlagComparer();

column.GroupByEvaluator = new FlagEvaluator();

Okay, I misunderstood the situation. I assumed this was a column with an image and text in it. But it appears that you are creating a dedicated column just for the images and using the cell Value as the image, rather than applying an image to a cell via the Appearance. So the CreationFilter would need to be changed around a bit.

Since this is an image column and not a text column, you need to look for a parent element that is an EmbeddableImageRendererUIElement, instead of EditorWithTextUIElement.

So just change: 

if (parent is EditorWithTextUIElement)

to

if (parent is EmbeddableImageRendererUIElement)

And I think everything else will work the same. 

The above didnt work for me, if column datatype at datasource level is of type image.

Also note: if you want editor in image column , then dont set column style = image, instead set datasource column datatype as image

,otherwise it makes readonly

If you intend to show a tooltip on the ellipsis or haveit respond to a click in some way, then you are right, it's probably better to show the ellipsis as a second element - whether it be an ImageUIElement or whatever.

The ellipsis you see on text is probably just drawn as part of the text using the TextTrimming property. The GDI+ text rendering handles that automatically and that's part of the same drawing operation. That only applies to text, anyway, so tha's not what you want. 

The ellipsis I was referring to is the one used by editors like UltraTextEditor. Put an UltraTextEditor control on a form and set ShowOverflowIndicator to true and then make the text longer than the control. It's not really an ellipsis, but it has a similar function. Like I said, I'm not sure how tightly tight that element is to the editors, so it might be easier for you to just use an ImageUIElement, but the OverflowIndicator might have some other useful functionality - so it might be worth looking into. 

I tried your simplified version. Works great but i prefer the first solution. Because the first one makes the image scale down vertically when the row height is shrinked but not horizontally. The second one simply doesn't scale at all. So i get a very small amount of vertical clipping when shrinking rows on the simplified solution.

 The ellipsis indeed seems trickier, not that the scalling wasn't tricky ;-). What makes it even worse is that I'd really like to be able to leverage what you guys do with text. Where if an ellipsis is shown, a mouse hover on the cell shows the value in a tooltip type control. I would love to show the image in that tooltip.

Thank you again for incredible support on this. :-)