Wow thanks all the replies got me thinking...
So I went to the server and put the file there in / dir and then went to my
client and tried the insert with /32334.jpg and darn it did work. Then I
moved it to a dir (/home/sql) and played around a bit...
So it is actually the server that imports the file so it has to be on the
server. Also, the directory (and subdirs) all have to have rx ability to
the PostgreSQL daemon user. The file needs min r for the PostgreSQL daemon
user.
This is a bit confusing, wonder why a client wouldn't be able to insert a
blob?