After reading this post

http://ko.infragistics.com/community/blogs/josh_smith/archive/2008/06/06/binding-a-xamdatagrid-field-property.aspx

I ran its code and it ran also. I made a few changes to it and they still worked. My changes are like this

using System.Windows;
using Infragistics.Windows.DataPresenter;
using System.Collections.Generic;
using System.IO;
using System.Text.RegularExpressions;
using System.Windows.Data;
using System.Windows.Controls;

namespace XamDataGridWithBoundField
{
    public partial class Window1 : Window
    {
         public const string VIEW_MODEL_RESOURCE_NAME = "MyViewModel";

         public Window1()
         {
            Person[] people = new Person[]
            {
               new Person("Boss Hogg", 42, "hogg.jpg"),
               new Person("Johann Bach", 50, "bach.jpg"),
               new Person("Mugatu", 39, "mugatu.gif"),
               new Person("Simon Wolcott", 24, "wolcott.jpg")
            };

            DataContext = new CommunityViewModel(people);

         }

         public new object DataContext
         {
            get
            {
               return base.DataContext;
            }
            set
            {
               if (Resources.Contains(VIEW_MODEL_RESOURCE_NAME))
                  Resources.Remove(VIEW_MODEL_RESOURCE_NAME);

               base.DataContext = value;
               Resources.Add(VIEW_MODEL_RESOURCE_NAME, value);
            }
        }
    }
}

<Window
    x:Class="XamDataGridWithBoundField.Window1"
    xmlns="http://schemas.microsoft.com/winfx/2006/xaml/presentation"
    xmlns:x="http://schemas.microsoft.com/winfx/2006/xaml"
    xmlns:igDP="http://infragistics.com/DataPresenter"
    xmlns:local="clr-namespace:XamDataGridWithBoundField"
    Title="Window1" Width="400" Height="400">

    <Window.Resources>
        <Style x:Key="PhotoCellStyle" TargetType="{x:Type igDP:CellValuePresenter}">
            <Setter Property="Template">
                <Setter.Value>
                    <ControlTemplate TargetType="{x:Type igDP:CellValuePresenter}">
                        <Image Source="{Binding RelativeSource={RelativeSource TemplatedParent}, Path=Content}" Width="60" Height="60" />
                    </ControlTemplate>
                </Setter.Value>
            </Setter>
        </Style>

        <BooleanToVisibilityConverter x:Key="BooleanToVisibilityConverter" />

    </Window.Resources>

    <StackPanel Orientation="Vertical">
        <ToolBar DockPanel.Dock="Top">
            <CheckBox Content="Show Photos" IsChecked="{Binding Path=ShowPhotos}" />
        </ToolBar>

        <igDP:XamDataGrid AutoFit="True" DataSource="{Binding Constituents}">
            <igDP:XamDataGrid.FieldLayouts>
                <igDP:FieldLayout>
                    <igDP:FieldLayout.Fields>
                        <igDP:Field Label="Name" Name="Name" />

                        <igDP:Field Label="Photo" Name="ImageUri"
                                Visibility="{Binding ShowPhotos, Source={StaticResource {x:Static local:Window1.VIEW_MODEL_RESOURCE_NAME}},
                                Converter={StaticResource BooleanToVisibilityConverter}}">
                            <igDP:Field.Settings>
                                <igDP:FieldSettings CellMaxWidth="70" LabelMaxWidth="70" CellValuePresenterStyle="{StaticResource PhotoCellStyle}" />
                            </igDP:Field.Settings>
                        </igDP:Field>
                        <igDP:Field Label="Age" Name="Age" />
                    </igDP:FieldLayout.Fields>
                </igDP:FieldLayout>
            </igDP:XamDataGrid.FieldLayouts>
        </igDP:XamDataGrid>

        <ContentControl x:Name="abc" />
    </StackPanel>
</Window>

Now I am wondering if this can be done to dynamically generated fields. Why? Because my grid's layout is dynamic.