Hi Shiva,
The set up and hold requirements stem from the fact that if 2 logic signals change simultenously at the input of a digital sequential circuit there is a possiblity of metastability.Which physical phenomenon is responsible for that I still don't know,if anybody on the forum knows,I will be glad to understand.
But,what is metastability?A metastable state is a stable state between logic 1 and logic 0.A digital sequential circuit has not 2 but 3 stable states where it can reside for indefinite time.So if circuit resides in this metastable state i.e between 1 & 0,for eternity,the further logic computation will hamper.Both Q and nQ o/p's of a flipflop assume same value which dose'nt correspond to valid 1 or valid 0.
Theorotically a circuit resides in this state for eternity,practically,due to noise,which adds to say,Q output of a flip flop and subtracts from nQ output or vice versa,and due to positive feedback,circuit comes out of metastable state and Q assumes a logic 1 and nQ assumes a logic 0 or vice versa.
mathematically,the equation for a stable state is satisfied at logic 1,logic 0 and at a voltage midway between 1 & 0.
So to avoid metastability,one input is allowd to change first and second later,giving rise to set up and hold times.These have to be kept to minimum to increase speed,so datasheets specify a min value for both.
more inputs from other members of the forum welcomed.
Shekhar