Image processing is a powerful tool for increasing the reliability and reproducibility of disease diagnostics. In the hands of pathologists, image processing provides quantitative data from histological images which supplement the qualitative data currently used by specialists. This thesis presents a novel method for analyzing digitized images of hematoxylin and eosin (H&E) stained histology slides to detect and quantify inflammatory polymorphonuclear leukocytes to aid in the grading of acute inflammation of the placenta as an example of the use of image processing in aid of diagnostics. Methods presented in this thesis include segmentation, a novel threshold selection technique and shape analysis. The most significant contribution is the automated color threshold selection algorithm for H&E stained histology slides which is the only unsupervised method published to date.