After reading Using MySQL as a filesystem, by Ben Martin @ linux.com, I had been pondering over the idea for a long time. And a couple of sleepless nights, the base for phpmyfs, a mysql file storage engine using php at the front end is almost ready. This is not yet production ready, though the image, or media management part is upto my expectations. Also it does support HTTP_IF_MODIFIED_SINCE headers, and responds accordingly. I was particular to make this compatiable with HTTP_RANGE headers, and it bombed on me, when multiple requests are being handled. May be my binary code has to be reworked. So an IP based restriction was imposed and the problem went away.
The code and files which I was using is added to this post as a download attachment, may be helpful for others.
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Storing Files In MySQL Table Using PHP, Insert large files in mysql db using php, streaming files directly from mysql storage