implement android:src=”@drawable/image” programmatically in Android

Try this:

ImageButton btn = (ImageButton)findViewById(R.id.button1);
btn.setImageResource(R.drawable.newimage);

where newimage is the image name in drawable folder.

EDITED
try this:

ImageButton btn = (ImageButton)findViewById(R.id.button1);
btn.setImageBitmap(bm);

where bm is bitmap extracted from server.

EDITED AGAIN
I see you receive a Drawable; well, do this:

normalImage = Drawable.createFromStream(code);
Bitmap bm = ((BitmapDrawable)normalImage).getBitmap();
ImageButton btn = (ImageButton)findViewById(R.id.button1);
btn.setImageBitmap(bm);