It's tough to do. Inserting the binary data as a blob is no big deal but when dealing with images...the only way to redisplay em is to do it in a popup window as since you are sending out binary data you need to send header information. If you send the header information and the browser expects gif or jpeg data...you can't then send html/text.
Why not just upload the file to a directory and store the NAME of the file in the database. Or better yet...store some data related to the image in the database and rename the image mysql_insert_id().jpg. (1.jpg, 2.jpg, 3.jpg, etc) That way you can be assured that nothing gets overwritten when you upload two pictures with the same name.
In my experience storing images as blobs are a waste of effort.
BUT..if you still want to here is a tutorial...
http://www.devarticles.com/content.php?articleId=68&page=1