I posted a sample back in January on how to display images from databases or the file system using Dynamic Data. You can view that post HERE. I've just updated that sample to fix some bugs and add some new functionality. You can download the latest version of DbImage from this link: DOWNLOAD DBIMAGE.
Here is a list of the changes and updates I've made since the original post:
1) Fixed an issue that caused DbImage not to work when the primary column for the table is a GUID.
2) Added support for compound primary keys (primary key that is more then one column in the table).
3) Added support for Entity Framework (previous release would display images in Entity Framework but fail to update them).
4) The asp:FileUpload control does not work correctly inside of UpdatePanels with partial rendering turned on. By default the templates in Dynamic Data are enclosed in UpdatePanels with partial rendering turned on. This means that uploading of images will fail unless partial rendering is disabled. The new sample adds a helper method call in the Page_Init of the Insert, Edit and ListDetails page templates. This helper call looks to see if any of the displayed columns are DbImage columns and if so turns off partial rendering for the page.