storing image in blob vs text?
Well...I'd say the best is to not store images in the DB, and store them in the file system, instead. You may want to save data about the image (including file name, etc.) in the DB, but you'd never search for the actual image data, plus it's quite inefficient to pull image data out of the DB just so you can then output it as a file.
Now, all that being said, if you still want/need to store it in the DB, I'd do it as a blob, so that there's no need to ever encode/decode anything.