rajkumar1,
If you are trying to acquire data in LabVIEW, the best way would be to use the Traditional DAQ palette in LabVIEW. You can access this by going to the block diagram >> Right Click to bring up the Functions Palette >> Measurement I/O >> Data Acquisiton. Here you will find functions for Analog Input, output and counter I/O as well.
An even better option would be to use NI-DAQmx. Using NI-DAQmx, you can setup a position measurement task very easily. In fact, there is an example that is shipped with the NI-DAQmx driver called Measure Angular Position.vi, which you can find using the NI-Example Finder.
Could you please tell me what is the hardware that you have, to see if NI-DAQmx might be an option for you. I hope that helps.
Regards,
Raajit L
National Instruments