Image management guide


I have looked around for this however thought it best to get some suggestions from the good folks here.

What I am looking to do with a combination of PHP and MySQL is create a section on one of my sites where you can enter a location for an image, upload it, create a thumbnail to display on the page and have it clickable to view the original image. Thinking about it, I suspect storing the actual images in the database is not the best option, it seems inefficient and would likely affect performance, it would have hundreds of images. So the best option (again, just thinking) would seem to be upload the image, store in a directory, create the thumb and then simply store the links to the thumb and image in the database.

I am fine with all but the image processing, I have never used PHP this way, so really what I am looking for is a reliable guide to take me through the process of uploading the image to an appropriate location and creating the thumbnail. Does anyone have any suggestions? I have seen a few but because I am not familiar with images I am never sure if what I am seeing is at least a reasonable method instead of a poor one if you get what I mean.

Would appreciate any suggestions.