I am trying to develop a generic armature which can be used to any character of similar types with some minor alterations. Eg: I have an armature for a human character, I can use the same for any human such as a kid, short fat guy, tall thin guy etc. Is this possible?
Please give me some links to start with if yes?
Thanks in advance.

You mean something like Rigify?

http://blenderartists.org/forum/showthread.php?200371-Rigify-Auto-rigging-system-new-and-improved
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Spacemice Wiki -- Input devices for a 3D world.
Spacemice / Blender Compatibility

yeah. Thanks. This is what I was talking about. Is there a way to manipulate the location where the bones can be located. My project is to generate an armature for a character in the following way. Suppose I wanted to create an armature for a kid character, I start with a generic human armature, which contains arms, legs, spine and head. I want to control the way they are assembled into a kids armature by passing the distance between the arms ,legs and scaling of the armature as parameters. Is this possible? thanks in advance.