I see you're using the normal denotation c:\...

This means your file is in the root directory of the C drive of the SQL server machine, and the userid used to...

An Image column is fine, this sample should work if you replace the path to Textcopy.exe with the one where your sql server 2000 is installed

The unfortunate thing about this...

You should pass the contents of the file, not the path to the file in your procedure.  Should the file be larger than 8000 bytes, use TEXTCOPY.exe server-side to import...

There is a neat little program called Textcopy.exe, installed together with SQL server 2000, which gives you a way to read the contents of any file into a text, ntext...