John
Try this link it gives a pretty good overview about op-amps and their uses:
http://www.answers.com/topic/operational-amplifier
The specific sections you want are voltage follower, difference amplifier
and non-inverting amplifier. The voltage follower acts as a buffer and
provides no signal amplification (called gain) or you can use a difference
amplifier circuit. Which would give you a variable output depending on the
difference in voltage between the two inputs (this can be an advantage in an
electrically noisy environment such as a car as it means that any common
noise signal in both the ground and signal wire gets ignored and your
voltage reaching your display will be more stable).
The final part is to use a non inverting amplifier to boost (or multiply by
the gain factor) the input signal: e.g for a gain of 6 your 0-2v sensor
voltage would vary between 0 and 12V provided the op-amp can push the output
to the power supply limits (not all of them can). You're probably better off
staying with a 2V range and using a digital panel meter calibrated for a max
reading of 2V then allmost all your resistors in the amplifiers will be the
same value. It's better to keep the signal going to the display at a
reasonable level rather than reducing to your 500mv as noise will tend to
drown out the signal at that level (think of an old audio amplifier - the
noise level is pretty much the same and at low volume levels it almost
drowns out the music).
For the 3 Red, Green, Yellow LED's you can use three op-amp comparators all
reading the same signal and just referenced to different voltages. So that
op-amp 1 turns on at 0V op-amp2 at 0.2V etc or you can get a bar graph chip
(LM3916 from National Semiconductor) and connect LED's only to 3 outputs,
calibrating the chip so the LED's are at the switching points.
For any further circuits just do a google for op-amp schematics or have a
look at a few manufacturers website for application notes, you'll then learn
about decoupling capacitors and voltage regulators which you'll need as
well.
As for specific devices to use everybody has their favourites; National,
Maxim etc. and if I told you everything to do there'd be nothing for you to
work out for yourself would there ;-) Half the fun with electronics is
learning from your mistakes and learning to keep the magic smoke inside the
components!
Chris