Im looking into a method of detecting the colour of a small bead and distinguishing if it is one colour or another, this will them be fed into a microcontroller as a digital signal.
Is a light to voltage converter the device i should be looking at?
Have a look at this one: SparkFun Electronics
or mounted on a breakout board: SparkFun Electronics
and still about the size of a quarter.
they also give some example source code for common processors.