It looks like it is not the number of resources or the timeline length that is causing the problem. It is the absolute image size.
I did a few tests. I've added the image export button to the following page:
http://www.daypilot.org/demo/Scheduler/ProgressiveEventRendering.aspx
It displays about 10,000 events. I've adjusted it to print the full width:
DayPilotScheduler1.Width = Unit.Percentage(100); // use Unit.Percentage(100) for full width
The output is 14,720 x 740 pixels, about 373 kB.
I have increased the event height to 100 pixels to make the output bigger:
DayPilotScheduler1.EventHeight = 100;
This produces 14,720 x 2840 pixel image, about 1.1 MB.
Increasing the cell width to 60 still works:
DayPilotScheduler1.CellWidth = 60;
This produces 20,020 x 2840 pixel image, about 1.25 MB.
After that point, it starts throwing OutOfMemory exceptions. Increasing CellWidth to 600 throws the ArgumentException you are getting:
[ArgumentException: Parameter is not valid.]
System.Drawing.Bitmap..ctor(Int32 width, Int32 height, PixelFormat format) +1145281
System.Drawing.Bitmap..ctor(Int32 width, Int32 height) +18
DayPilot.Web.Ui.Export.SchedulerExport.Export() in C:\Users\Hynek\Documents\Visual Studio 2010\Projects\DayPilot\Source\Web\Ui\Export\SchedulerExport.cs:151
DayPilot.Web.Ui.DayPilotScheduler.ExportBitmap() in C:\Users\Hynek\Documents\Visual Studio 2010\Projects\DayPilot\Source\Web\Ui\DayPilotScheduler.cs:6049
DayPilot.Web.Ui.DayPilotScheduler.Export(ImageFormat format) in C:\Users\Hynek\Documents\Visual Studio 2010\Projects\DayPilot\Source\Web\Ui\DayPilotScheduler.cs:6028
...
So there is clearly a limit of what the .NET image API can handle.
The output image size might seem small but PNG uses compression that is very effective for this kind of bitmap. The memory required for 20,020 x 2,840 bitmap is 20,020 * 2,840 * 32 bits = 227,427,200 bytes.