Here's a little hack I just wrote to convert a 24-bit colour PPM file into a 1-bit monochome image (still 24-bit colour, but either all 0xFFFFFF or 0x000000 pixels.
You can create and view PPM files by exporting or opening files in GIMP. I also used GIMP to convert the output back to a monochrome BMP file. Actually GIMP could do the entire task for you. unless you need to do it in software.
Code is pretty rough, but halftone() should give you the idea. You need to change WIDTH and HEIGHT, and the offset fseek() uses to skip the file header.
I've attached a zoomed in area of eye of the Tom Hanks photo I was using to test it. It is pretty hard to upload 1-bit files, as BMP format isn't supported.