Hosting data/image heavy site on dedicated, and images on shared hosting account.

Question

Hi I have never done this before, so I am throwing this out there for opinions. Thanks in advance.

I have built a database/image rich application thats only going to increase in size. I am on a budget, but do have a rather good 3Ghz XEON server with 400 GB space.

My idea which I am looking for oppions on is to:

1) Run the application on the server as well as the database. 2) Host the images on a shared server with no limit on data storage. 3) Cache the images on my server and refresh every 7 days eg.

Any ideas ? Is this bad or a good way for an individual on a TIGHT budget.

Thanks Jon