problem creating varbinary(max) data type

I'm unable to create a field with the type varbinary(max). When I try doing this with Management Studio, it tells me that the maximum length is 8000 bytes. I've also tried creating the field with DDL as shown below, but that doesn't work either. If I create the varbinary field with a length of 8000 or less, it works fine. Is there some trick to using varbinary(max)?

Thank you.

create table images (filename nvarchar(250) primary key,photo varbinary(max))
The T-SQL folks may be able to help here.|||

Sounds like compatibility level is set to 80(2000) instead of 90 (2005). You can get the level by right clicking on your database and going to properties\options page.

You can use the system procedure sp_dbcmptlevel to adjust your database. See BOL here for more detail. http://msdn2.microsoft.com/en-us/library/ms178653.aspx

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Your suggestion worked. Thank you very much!