My idea is to use an Arduino and these are my results so far:
There is a small oscillator circuit on the top breadboard, using a 555 timer. That runs between 28 and 150Hz and provides a square wave to the Arduino, simulating an ignition system that runs between 850 and 6000 RPM. The Arduino reads the frequency, computes the RPM and then displays that information on the LCD. There is an alarm output that you can see on the red LED that is enabled when the RPM is between 2200 and 2400. Further enhancements are to add a temperature and oil pressure sensor. The idea is to have the LCD on a flylead so that it can be hidden when the car is on display, or a speech synthesiser to give relevant info.
Here are some pictures of my test bed. Currently using parallel LCD but will convert to I2C to reduce the wiring requirement. The keypad currently does nothing, it's just there for other development.