You could just store the name of the image in the database, like this (image1.jpg), then in your datagrid you can just do something like this
VB Code:
<asp:TemplateColumn HeaderText="HeaderText">
<ItemTemplate>
<img src='\images\<%# Databinder.Eval(Container.DataItem,"DatabaseFieldName")%>'>
</ItemTemplate>
</asp:TemplateColumn>
Once you filled in the field name, it would look like this when the page is displayed.
"images\image1.jpg"