How large is each image file? Even if you scale them in reporting services it just uses html attributes or CSS for scaling but doesn't shrink the actual image file. It's attempting to load the entire dataset of 2800 images into memory so it's the report server that will be hitting the OutOfMemory exception.

You could consider making thumbnails the images and using an action so for the user to open the full size version.

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What might be a more sensible option is to store the images files externally and just keep the attributes and links to the external images in the database.

You can use an external image URL loaded from the database in the SSRS image control. That way you can filter the images easily by attributes but leave the webserver to serve up the images to the user.

This would work a lot faster and avoid the memory pressure SSRS is coming under by trying to load all the images in the dataset to memory.