Very well possible
first step is to get clear requirements what it should do and what not, what kind of tasks it can perform on behalf of the user.
Make sketches how the UI should look like and how a user would got through these screens to perform these tasks.
From these requirements define the architecture what components you need (e.g. xml reader writer etc)
Then start building prototypes for the parts you think are risky and learn the tech needed to get those parts right.
But there are many other ways to do this...
Thanks. I am aware of all the above steps.
I should have clarified: Are there any free tools that I can use? Visual C++ is a tool but it has a license.
Maybe Eclipse has a plugin or something like that?
In the past I've used Visual Basic to create stand alone Windows applications.
Maybe there's something that is convenient and most easy to use.
In summary, I want to make a project based on the Arduino and give it a user. They would take the hardware and connect it to the PC, click on the EXE file and run the program. That program would send and receive information from the board and look nice graphically. They would not need to run the Arduino IDE, open a project and run it.
This demo shows how to communicate with an Arduino using Python. It will work on Windows if you edit it to make the correct reference to the Serial port.
I can program in Python somewhat. Can I get a stand alone executable Windows based program?