When rotary machines are running, acousto-mechanical signals acquired from the machines are able to reveal their operation status and machine conditions. Mechanical systems under periodic loading due to rotary operation usually respond in measurements with a superposition of sinusoids whose frequencies are integer (or fractional integer) multiples of the reference shaft speed. In this study we built an online real-time machine condition monitoring system based on the adaptive angular-velocity Vold-Kalman filtering order tracking (AV2KFOT) algorithm, which was implemented through a DSP chip module and a user interface coded by the LabVIEW®. This paper briefly introduces the theoretical derivation and numerical implementation of computation scheme. Experimental works justify the effectiveness of applying the developed online real-time condition monitoring system. They are the detection of startup on the fluid-induced instability, whirl, performed by using a journal-bearing rotor test rig.