The easiest way is not to use a picture box at all: use a Panel, and paint the image yourself by handling the Paint event foe the panel:
private void panImage_Paint(object sender, PaintEventArgs e)
{
Graphics g = e.Graphics;
g.ScaleTransform(sx, sy);
g.DrawImage(myImage, new Point(0, 0));
}
private void butZoomIn_Click(object sender, EventArgs e)
{
sx *= 2;
sy *= 2;
panImage.Invalidate();
}
private void butZoomOut_Click(object sender, EventArgs e)
{
sx /= 2;
sy /= 2;
panImage.Invalidate();
}