physical location of the stored documents , is it stored on sqlserver or just the meta data stored in sqlserver and the document is stored in sharepoint only accessible folder?

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By default, all documents including the files themselves are stored in the SQL Server as Binary Large Objects (BLOBs), unless the server has been configured with Remote Blob Storage (RBS) to ship the larger binary content off the database to improve performance.

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size dosnt matter though, its per extension ;-) – Anders Rask Aug 6 '10 at 7:46
Third party providers allow you to offload based on size. – PirateEric Jan 27 '11 at 13:35
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