In my view, you need to think about two things when storing propane.
The first: What happens if the valve fails. Propane seeps out and flow into depressions, seeking the lowest lying area available. This is really dangerous, but easily prevented: Store it somewhere ventilated.
Second: What happens in case of fire. Small gas canisters go BOOM when you heat them (pressure buildup due to high temperature). If you heat them with open flame, all the gas inside will ignite simultaneously. You tell me if that qualifies as an explosion or merely as rapid combustion. Words like "awesome" and "terrifying" comes to mind. Have a good look on the BOOM parts of this video (ignore the crazy local linguistic peculiarities):
http://www.newswire.no/?melding=9052 Basically the message is: Ventilated shed outside. In addition to the fact that it will set anything combustible nearby at fire, a blowing gas canister has enough energy to skewer the foundations of your house (if contained within a small, enclosed volume). If you have a fire in your house, the last thing you'd want to worry about is gas canisters going KA-BOOM.
A big gas tank is actually much safer in a fire as those usually have a safety valve. This valve will release gas that will ignite and burn in a safe and controlled manner. Much safer than gas canister that are guaranteed to blow up.
I keep my propane (gas canister + 5 kg (11 pound) propane tank) in the shed adjacent to my outer wall. Ideally, it should be a separate building, but outside the outer walls is good enough for me. The shed is well ventilated and in case of a fire it will not contain the explosions: The shed will be damaged, but not in a way that will not make matters worse for the house. But I also consider moving the canisters to my garage.
One tip for those without a separate shed in your garden: Consider one of those plastic "tool boxes" that are meant to be put on your outer wall. Basically they are a lazy (and poor) man's tool shed, big enough for a small variety of gardening tools - essentially just plastic doors with shelves and a roof. Not perfect for propane, but make a few extra vent holes in the bottom and put it on the shady side of your house and you're pretty close.
You could even put them outside a window or at a balcony. Basically anywhere as long as it's not inside and not heated by blazing hot sun.