I wanted to know how I can interface arduino with touchscreen( like 7-12' or higher) for a project and also someway to recognize fingerprints on the touchscreen itself(would be totally awesome for others personal apps) 
A standard Arduino can't handle the screen part of the touch screen, not enough memory or speed. I recommend looking into the re-using LCD episode to get a better idea why.
As for the touch, there are several easy to use sensors using SPI or I2C which take 4 or 5 wire resistive input and turn it into x y values for use, but without the screen, just having the touch is not as helpful. Also, fingerprint readers are typically not touch screens, not enough resolution, I believe they normally are some type of light sensor or small camera that you swipe your finger over. Though you can get an Arduino compatible finger print reader
Arduino Blog » Blog Archive » Finger print sensor with Arduino