You could probably do this with IMAQ functions in Labview, but you may want to consider getting an encoding altimeter instead. You can get one with the display, or without the display, which is called a blind encoding altimeter. These have some sort of signal output that can be read, and some of them have an RS-232 output. I'm not sure of the cost, but you may be able to get one used. You can get one from a aircraft "junkyard", and not worry about the FAA regs if you are not going to use this as an altimeter in an aircraft.
If you chose to go the vision route, you may be better off looking at the digital display. You could use pattern matching to determine what digit is in what position. From there you could do the math to determine altitude and rates. For h
ardware, you would need the camera, frame grabber, lense, cable, and probably lighting. There are other options, for hardware, but they can get expensive, or not be as flexible.