Thank you all for the replies. Ill answer each query down below.
"How to identify the beginning of a gesture and the ending of the gesture."
I imagine the glove to be in on standby until the user activates it. When the glove is active, it will read the position of the hand (multiple times in a second) and relate that to a library of already established gestures. Certain gestures will be simple, only requiring one motion. For gestures requiring more than 1 motion, the Arduino will be programmed by nested loops where the first motion triggers the search for the next motion and so on. When the entire motion is done, the glove can be brought to a specific motion which signifies the end of the signing.
"I would imagine you would need some sort of huge 'look up table' to be able to check the 'gesture' against whatever is supposed to be out put."
This is very true. A huge library of words with their related gestures would be needed before this glove could be used for basic communication. I am a realist so I'll be content if the original prototype can recognize 10-20 words and string them along for a sentence with reasonable accuracy. However, this is easy to combat with a few of these devices, all uploading individual gestures into a shared data bank.
"Feeding the raw position data to a PC should allow a neural network to be trained to recognize continuous gestures. Not something that could be done on an Arduino, but a possible solution."
First of all, thank you for the research paper you provided. It gave some much needed insight into the practical application of a flex glove.
Onto your suggestion for a neural network, I agree with you a 100%. A neural network which trains itself to how people actually sign to increase accuracy will be crucial to have (instead of just adding a static +-1000 ohms to a resistance value). Although this would be something for later.
"This is a really really advanced project for a beginner. Not to discourage you, but you might shelve this project for a little while and learn a bit more about the platform before you end up just frustrating yourself"
Thank you for the advice but I wont be doing this project alone. I have friends and colleagues to help troubleshoot if needed. Although I am comfortable with coding this, so it shouldn't be as much of a leap as your swimming analogy 
"These sign language gloves exist already. I've seen them on the news already. They are probably expensive, but even at that will be cheaper than building your own. "
Well one of the few advantages of living in my country is that cheap labour makes for extremely cheap prices. A glove I make will easily be half of what the market probably has. And the journey itself would be enlightening as for improvements and the hurdles we need to cross. Price will be a major factor since the deaf community in Pakistan is poorer and more illiterate than people who can speak.
Thank you again for all your replies. Ill be doing more research into the inner workings, and its coding.