Try using:
e.Graphics.DrawEllipse(Pens.AliceBlue,e.ClipRectangle);
It worked for me. You can also try:
e.Graphics.DrawEllipse( Pens.AliceBlue, 0, 0, pictureBox1.Width-1, pictureBox1.Height-1);
or
Rectangle rect = e.ClipRectangle; rect.Inflate(-1, -1); e.Graphics.DrawEllipse(Pens.AliceBlue, rect);
source share