Welcome to the OptoForums!
Here's a relevant excerpt from the PAC Display Users Guide (form 1702) about what you can write to a tag (including a digital output):
Alarm, Acknowledge, and Alarm Clear Notifications
You can have a value sent to a tag when any of the following alarm events occur:
• An alarm occurs
• An active alarm is acknowledged
• An active alarm returns to Normal from an alarmed state.
But since you also asked about other options, here's an example chart that's probably more fancier than you need (it lets you change which tags you want to monitor on-the-fly, sends email and more):
I've just added that link to This List of "Greatest Hits" which includes a number of examples from the forums and elsewhere that might be of interest to you also.
Hope that helps!