Here's some code I'm using to take screenshots in my Selenium tests:
// Get Screenshot
Screenshot ss = ((ITakesScreenshot)driver).GetScreenshot();
string screenshot = ss.AsBase64EncodedString;
byte[] screenshotAsByteArray = ss.AsByteArray;
ss.SaveAsFile("test.jpg", ImageFormat.Jpeg);
The file is saved to the bin\debug folder for your VS project.
I think you only need to add the System.Drawing reference, and add this to the class:
using System.Drawing;
using System.Drawing.Imaging;