I would like to start a project that will take a picture of the license plate of a vehicle and then take all the digits and record them. Is there a way to have the Pi recognize the digits?
You should look at computer vision and the OpenCV library. To put it quickly, this problem has been solved before, and all you need to do is to google "recognizing numbers with opencv" to find tutorials.
OpenCV is one of the most-used computer vision libraries available for Linux. And yes, it does compile on the Raspberry Pi.
Speaking of which, this is much more a generic Linux question than a Raspberry Pi question.