Allowed vs Restricted File Extensions

I'm working on a module which will allow end users to upload files and I realized there is a security risk. For instance, a user could upload a malicious PHP script to perform nasty stuff on the server. My solution to this is to allow the administrator to enter a list of file extensions to allow, or enter a list of file extensions to block.

I'd like to know what the other module developers think is the best way to go, and get a feel for what users would prefer.

Thanks!
I'm for allowed extensions. It's much easier to say ".doc, .jpg, and .tiff" than "everything but .exe and .zip and .gzip etc etc etc," because there are a lot of extensions that would put the site at a security risk, and it's hard to keep track of all of them. Best I think to just disallow everything but a handful of special extensions.
i would go for a list of allowed extensions,