Thanks for the heads up on this guys. I think looking at the voltage measuring problem, I will go for the PIC route finally as there is a very good article from Melanie about using comparators, that even a novice like me understood easily. Also, the LED can be controlled easily and more flexibility is there down this route.

However, this works fine when reading the voltage when it is dropping below a certain threshold.

BUT what changes can be done to measure the voltage when the battery reaches it's full charge.

The problem is that, once the charger is attached, the voltage reading is misunderstood by the PIC as the voltage it reads is equal to voltage from the charger, only when the charger is removed, correct reading is taken by the PIC. I was under the impression that when charger is plugged in, because of the current drain, voltage drop will be there & gradually as current will stop & voltage will rise and PIC will have correct reading. BUT the voltage drop is not that significant here. I have even tried it with sealed Lead Acid battery as well and its own charger but I face the same problem.