Having used both methods I'd say go with the database. If you store them on the filestore and they need protecting then you'd have to store them outside the web-root and then use a handler (like John mentions) to retrieve them, anyway. It's as easy to write a handler to stream them direct from database and you get a few advantages:
- With database you don't need to worry about filestore permissions or generating unique filenames or folder hierarchies etc.
- With database you can easily apply permissions and protection directly - no trying to work out who can view what based on paths etc.
- With a database you can store the image and metadata all together - when you delete the metadata you delete the image - no possibility of orphaned records where you delete from database but not from filestore
- Easier to back-up database and images and then restore
The disadvantage is that of performance, but you can use caching etc. to help with that. You can also use FILESTREAM storeage in SQL Server 2008 (and 05?) which means you get filesystem performance but via the DB:
"FILESTREAM integrates the SQL Server
Database Engine with an NTFS file
system by storing varbinary(max)
binary large object (BLOB) data as
files on the file system. Transact-SQL
statements can insert, update, query,
search, and back up FILESTREAM data.
Win32 file system interfaces provide
streaming access to the data.
FILESTREAM uses the NT system cache
for caching file data. This helps
reduce any effect that FILESTREAM data
might have on Database Engine
performance. The SQL Server buffer
pool is not used; therefore, this
memory is available for query
processing."