Angie has a great post that looks at the differant ways to display images in a Drupal CMS website.
The main difference between Image and imagefield module is that Image module stores images as nodes. That means that each product you create will have two nodes created for it: the product itself and the image attached to the product.
http://www.lullabot.com/articles/image_and_image_exact_sizes_vs_imagefie...
After the Lullabot people declared the Image Module as Deprecated, I had a look at Imagecache and have largely used it instead.
I find the whole 'cache' business useful if I ever change themes and hence need different dimension images. At one point I wanted a Gallery for a project I had already developed. All I had to do was create a new imagecache setting and that was it.
Great -- when used with CCK & Views.
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