We have a project coming up where we will be building a whole backend CMS system that will power our entire extranet and intranet with one package. The question I have been
There was a nice research paper published by Microsoft Research called To Blob or not to Blob where they looked at all sorts of variables and impacts.
Their finding in the end:
Since that paper was published, SQL Server 2008 has also added the FILESTREAM attribute which makes storing stuff in the file system, but under transactional control, a reality. Highly recommended you check that out!