Since I don't have a life, like you regular folks, this weekend I extended the Atom support in this here blog. Now, before you switch off, this should allow me to use Atom-enabled tools like Windows Live Writer to create posts with embedded images and automatically upload them to the server as well as the post itself.
The images, as well as the post's text, are stored in my li'l database. I'm not at all sure how well that'll perform, but we'll give it a go.