Well, what is the file and what code are you using to look at it?
To insert lots of rows (i.e. a huge CSV) you should be using
SqlBulkCopy with a streaming IDataReader; I recommend the one here:
http://www.codeproject.com/cs/database/CsvReader.asp
To insert a single huge BLOB, you must use chunking techniques - i.e.
you need to allocate a buffer (8040 bytes is optimal for SQL Server, I
believe) and read buffer-fulls of info, and pass this down to the db
in chunks, using the appropriate BLOB SQL commands [the commands
change between SQL 2000 with "image", and SQL 2005 with
"varbinary(max)"].
If you try and load the entire BLOB into memory (as a huge byte[]),
yes it will fail.
If you try and load the entire file into memory (as a DOM, DataTable,
etc), yes it will fail.
Marc