help noob with variables

trying build home security system 3 or more states(armed away, disarmed, armed stay).  code compiles without errors var "state" doesn't change when button on keypad pressed.

any appreciated

code: [select]

#include <lcd4bit.h>

lcd4bit lcd = lcd4bit(2);

void setup() {

 lcd.init();
 lcd.commandwrite(0x0f);
}  

int state = 1;
int keyvalue = 0;
int password = 0;



void loop() {

 serial.begin(9600); //debuging purposes only
 //=================================================================================================================================
 //=====================================================================disarmed====================================================
 //=================================================================================================================================
 while(state == 0)
 {
   lcd.clear();
   lcd.cursorto(1,4);
   lcd.printin("disarmed");
   delay(1000);
   return;
 }


 //=================================================================================================================================
 //=====================================================================armed away==================================================
 //=================================================================================================================================
 while(state == 1)
 {

   lcd.cursorto(1,3);
   lcd.printin("armed away");

   //=====================check key===================================================================================================

   int keyvalue = analogread(0);

   switch(keyvalue)
   {
   case 31:
     (password = password + 1);
   }

   //==================change state===================================================================================================

   if (password == 1)
   {
     lcd.clear();
     int state = 0;
   }

   return;
 }


 //===================================================================================================================================
 //=====================================================================armed stay====================================================
 //===================================================================================================================================
 while(state == 2)
 {

   lcd.clear();
   lcd.cursorto(1,3);
   lcd.printin("armed stay");
   delay(1000);
   return;
 }




}//end void loop




i'd recommend write out, in plain english sentences, needs done.  probably on computer you'll able edit, insert , delete steps involved complete task.

do , post have have in way of outline both , wishes can reference during development,

my second recommendation not use numbers directly in source , instead use constants , or enum.   numbers don't suggest being used for.  example:

enum { disarmed = 0, armed_and_present, armed_and_away };

can used define label more meaningfully suggest function numbers 0, 1 , 2 states.

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