The images are only going to be stored for automation as the stock control company will load the images into their database which will then be transfered over to the website when all the new products are added.
Otherwise when the products database is transfered over someone will need to go through and add all the image for each product.
As soon as the database is transfered a cronjob or manually run script will run through the database and convert the blobs to files and create the sizes needed + add the dir/filename into the database (I still need to work out if image magik or the GD will do this better) I'm thinking of even clearing the blobs after this process to cut down on the DB size. It is going to be on a dedicated host so this doesn't really matter.
Well thats my idea for the method so far anyway.