In this study, we developed rotating machine vibration condition monitoring system based upon Windows NT and DSP Board. Developed system includes signal analysis module, trend monitoring and simple diagnosis using threshold value. Trend analysis and report generation are offered with database management tool which was developed in MS-ACCESS environment. Post-processor, based upon Matlab, is developed for vibration signal analysis and fault detection using statistical pattern recognition scheme based upon Bayes discrimination rule and neural networks. Concerning to Bayes discrimination rule, the developed system contains the linear discrimination rule with common covariance matrices and the quadratic discrimination rule under different covariance matrices. Also the system contains k-nearest neighbor method to directly estimate a posterior probability of each class. The result of case studies with the data acquired from Pyung-tak LNG pump and experimental setup show that the system developed in this research is very effective and useful.