Or would you please suggest a good Linux compatible (out of box) Mobo/CPU (< 7K)?
I recently got a Gigabyte K8 Triton (VIA K8M800 chipset) + ADM Athlon 64 3000+ for a total of Rs. 8400/- Works like a charm with Xorg 7.0 and KDE 3.5.2 (linux 2.6.12, debian sid).
The only downside is that there's no direct rendering support for it in X.org yet; you'll need it if you want smooth, fast transluscency effects in X.org. Personally I haven't missed it at all ;-)
Siddhesh