Just to wrap this up.
To send an image to the server using *.php via AJAX is doable.
However, your server may limit the url to a certain number of characters (usually 8190 characters, this is to slow Denial Of Service (DOS) attacks against the server per Hostgator.) see 414 error*
When retrieving data from the server, usually the url is unlimited (no need for them to worry about DOS when sending).
The suggestion has been made to use a Blob, but the best I understand it, this is only done locally and is of no help when sending data over the internet.
Using binary might reduce the url by 30%, but on a 5mb file, that is still well over the server threshold of characters and again makes the url too long to be sent.
The only solution I see it to parse the data, send multiple AJAX post and just append the cell text that holds the picture data.
Hope this information helps others.
If anyone can add information to this, or sees an error please let me know. Thank you.