also, take care of creating thumbnails and several different resolutions
the limit is 1mb due to app engine blobfield limitations and my budget :) 1mb is enough to be useful.
I was wondering about resizing images above 1mb to fit the 1mb automatically.
Yes thumbs are a must.
can't you just upload them to amazon s3?
i could use the BlobStore but i have almost zero budget for this atm and these kinds of services take a lot of bw.