chris,
I think you have the right idea. I dont believe there is any way for you to load the image in the web page while its still on the clients machine.
You could also have a temp directory where you upload the images (this directory could be dumped every so often). Once the image is then in this temp directory you could load the image to the user and then if the user accepts this image you could then move the image into a different directory or save it to the DB (however your going to do this).
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