How can I insert binary file data into a binary SQL field using a simple insert statement?

I believe this would be somewhere close.

INSERT INTO Files(FileId, FileData)SELECT 1, * FROM OPENROWSET(BULK N'C:\Image.jpg', SINGLE_BLOB) rs

Something to note, the above runs in SQL Server 2005 and SQL Server 2008 with the data type as varbinary(max). It was not tested with image as data type.

If you mean using a literal, you simply have to create a binary string:

insert into Files (FileId, FileData) values (1, 0x010203040506)

And you will have a record with a six byte value for the FileData field.

You indicate in the comments that you want to just specify the file name, which you can't do with SQL Server 2000 (or any other version that I am aware of).

You would need a CLR stored procedure to do this in SQL Server 2005/2008 or an extended stored procedure (but I'd avoid that at all costs unless you have to) which takes the filename and then inserts the data (or returns the byte string, but that can possibly be quite long).

In regards to the question of only being able to get data from a SP/query, I would say the answer is yes, because if you give SQL Server the ability to read files from the file system, what do you do when you aren't connected through Windows Authentication, what user is used to determine the rights? If you are running the service as an admin (God forbid) then you can have an elevation of rights which shouldn't be allowed.