Welcome to Stack Overflow, please don't ask the same question multiple times. With less popular tags like Kinect, it can take some time for people to answer (the tag only has 79 followers).
For simplicity, I'm going to assume you want to crop out a set size image (for example, 60x60 pixels out of the original 800x600). In your VideoFrameReady method, you get the PlanarImage from the event args. This PlanarImage has the bits field, which contains all of the RGB data for the image. With a little math, you can cut out a small chunk of that data and use it as a smaller image.
// update video feeds
void nui_VideoFrameReady(object sender, ImageFrameReadyEventArgs e)
{
PlanarImage image = e.ImageFrame.Image;
// Large video feed
video.Source = BitmapSource.Create(image.Width, image.Height, 96, 96, PixelFormats.Bgr32, null, image.Bits, image.Width * image.BytesPerPixel);
// X and Y coordinates of the smaller image, and the width and height of smaller image
int xCoord = 100, yCoord = 150, width = 60, height = 60;
// Create an array to copy data into
byte[] bytes = new byte[width * height * image.BytesPerPixel];
// Copy over the relevant bytes
for (int i = 0; i < height; i++)
{
for (int j = 0; j < width * image.BytesPerPixel; j++)
{
bytes[i * (width * image.BytesPerPixel) + j] = image.Bits[(i + yCoord) * (image.Width * image.BytesPerPixel) + (j + xCoord * image.BytesPerPixel)];
}
}
// Create the smaller image
smallVideo.Source = BitmapSource.Create(width, height, 96, 96, PixelFormats.Bgr32, null, bytes, width * image.BytesPerPixel);
}
Please make sure you understand the code, instead of just copy/pasting it. The two for loops are for basic array copying, with the number of bytes per pixel taken into account (4 for BGR32). Then you use that small subset of the original data to create a new BitmapSource. You'll need to you can change the width/height as you see fit, and determine the X and Y coordinates from the head tracking.