What effect the dataBase size?

[thermax04]

My ACP Attachment settings says ;
Attachments are currently being stored in the database

What is the meaning of Moving the attachments to the file system?
is it the Hosting site?

the help file says:

If you are moving attachments into the file system, it is recommended that you do *not* place the folder under your web root (usually named public_html or www or www_root) because people will be able to bypass vBulletin's permission system and download them. Also, you will need to make the folder writeable by PHP. The easiest way to do this is CHMOD it 777 (consult your FTP, Telnet, or SSH documentation for more info on how to do this). We do not recommended that you put a folder that is CHMODed 777 under your web root - another good reason to have it located above the document root

Iam a new in Forums CP, I did not understand what it means
Is there any special steps need to be done first?
Is there any side effects on any other settings?
Please advice and explain to a non expert person at all:erm: