
Hi Anjan,
It is hard to say exactly what drive will work for you. Most modern drives will not work since the drives have more smarts and will tend to spin down after a short time since there is no computer connected to the drive. I would look at drives in very old systems like 386s. Drives under 100MB should be good.
That is a cool project but it was just featured on Hacked Gadgets. You will have to contact the creator for additional info. Drop us a line at http://hackedgadgets.com when you get your project done, I am interested in having a look. 
I have not used that microcontroller before so I can't help you with sample code but this project should give you some ideas.
http://hackedgadgets.com/2006/10/24/autorange-capacitance-meter/
Thanks Petter.
Hi Charlie,
Sorry for the delay in response. That project was just featured on Hacked Gadgets and was not actually constructed by me. There should be a link in the article that will lead to additional information.

Good to hear it is functioning again. Sounds like a cool set of stairs!
Alan
Hi Dayna,
Sorry to hear you are having some troubles. Please disconnect all wires and try the controller test procedure again and let me know what the results are. http://alan-parekh.com/kits/stair-light-kit/stair-light-kit-control-unit-test-procedure/
Alan
It looks great in person. 
Thanks Lou,
Which display are you referring to? The rotating LED display?
Alan
Hey Alan, Thanks. We will have to get the stair lighting controller in your house this summer. 
Hi Ray,
You can purchase it here
http://alan-parekh.vstore.ca/index.php/cPath/1_2