Hello Reinaldo,
In this case, the LM35’s output is a voltage linearly-proportional to the Centigrade temperature.
In order to deal with this output, I recommend to use the ADC Module of the DEMO9S08SE8.
You can find, attached to this response, a sample ADC project in order to read the LM35 output.
Please let me know if you have any question about the code provided. I will be glad to help.
You can find more information about the DEMO9S08SE8 at:
SE8 Demonstration Board|Freescale
Have a great day.
David