Handshape recognition is an important problem in computer vision with significant societal impact. However, it is not an easy task, since hands are naturally deformable objects. Handshape recognition contains open problems, such as low accuracy or low speed, and despite a large number of proposed approaches, no solution has been found to solve these open problems. In this thesis, a new image dataset for Irish Sign Language (ISL) recognition is introduced. A deeper study using only 2D images is presented on Principal Component Analysis (PCA) in two stages. A comparison between approaches that do not need features (known as end-to-end) and feature-based approaches is carried out. The dataset was collected by filming six human subjects performing ISL handshapes and movements. Frames from the videos were extracted. Afterwards the redundant images were filtered with an iterative image selection process that selects the images which keep the dataset diverse. The accuracy of PCA can be improved using blurred images and interpolation. Interpolation is only feasible with a small number of points. For this reason two-stage PCA is proposed. In other words, PCA is applied to another PCA space. This makes the interpolation possible and improves the accuracy in recognising a shape at a translation and rotation unknown in the training stage. Finally classification is done with two different approaches: (1) End-to-end approaches and (2) feature-based approaches. For (1) Convolutional Neural Networks (CNNs) and other classifiers are tested directly over raw pixels, whereas for (2) PCA is mostly used to extract features and again different algorithms are tested for classification. Finally, results are presented showing accuracy and speed for (1) and (2) and how blurring affects the accuracy.