Easy one. Thanks.

Just to close the gaps, the option should have been VARBINARY(MAX) instead of just VARBINARY because anything else like VARBINARY(N) {N being a natural number up to 8000} won't work but the explanation covers it nicely. 🙂

create table #t(i VARBINARY(8000) FILESTREAM)

Incorrect syntax near 'FILESTREAM'.