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Does SQL store any sort of file

I have a VB program where I am accessing SQL server.  I would like to also program the ability to connect a document and save it in the SQL database.  Is it possible to store pdf, jpegs, xls, and files of any sort within SQL?  If so, what is the datatype?  Does performance slow down over time as these types of files are stored since they take up more space?  Can I archive these files every couple years in the database to free up the space?

Any suggestions on this topic would prove to be helpful.
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Kelvin Sparks
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You can customize it to restrict access to only be through SQL Server, or allow direct access to them.

What does that mean?  Example?
He meant file access via a network share. "direct access" is missleading.
Pardon my stupidity on the subject, but what is the difference between binary form varbinary(MAX) and FILESTREAM?  What is the advantage and disadvantage of both?
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Is performance better on the one over the other?

Also, so FILESTREAM utilizes a different spot on the SQL server machine to store the files?
Also, between varbinary(max) and Filestream, which one is smaller, hence faster, to transmit over the internet?