Andy,
When the cancel button on the scanner dialog is clicked, you will get an AcquireCanceled event.
Is this a TWAIN driver or a WIA driver? With WIA you might have issues because it doesn't follow the same rules as TWAIN.
1. Make sure you are using the latest version of DotTwain.
2. If you have this problem using the latest version, open a support case and provide a simple project that duplicates your problem. Also give us the name of the driver you are testing with.
Glenn Chittenden Jr.
Atalasoft Development Team