Right! Have finally got this working.
Sadly cant use the method suggested in figuerres link as for security reasons in Silverlight they have disabled some of those functions. I have managed to get the first method working (
http://www.thedatafarm.com/blog/2008/01/31/ConvertingSilverlightInkPresenterImagesToAPNGFile.aspx)
Basically you have to use an InkPresenter this allows you to easily get a collection of the strokes (although you could probably do the same with Canvas and iterate through the objects)
Iterate through the strokes in the InkPresenter and convert the objects into XAML
Send this to a web service
The web service has full access to the WPF toolset so you can then convert it into a png etc
Ill post some example code once I have tidied it up.