Hi Kunaal,
try working out a "DATA ACQUISITION and MONITORING SYSTEM" which works as follows (u can fine tune the specifications).

1. Write a High-Level Package (in C/C++/VB...) for user-interface. The user should be able to add/modify/delete channels (Analog/Digital). Once he has done this, the information is transmitted to the 8051 kit (prepare on ur own) through the Serial Port (use a Null-Modem Cable for it).
2. Once downloaded, the system checkes all the channels and compares the data obtained from them to the preset data (user sets them) and raise an alarm if any channel goes out of the way (also indicating the channel no and value).

Hint: Try using 8051 variants like a few controllers from CYGNAL etc.(www.cygnal.com)

Get back to me if u need finer details (clearer) or if u have already thought of such a system and didnt like it, just ignore this msg.

Regards,
Sriharsha.