cnukutti, your system resources seems to be too low mate. May be that is why KDE gave you problems. PCQ Linux contains KDE 3.2, the latest at that time. Don't know whether new version has come since then. Newere versions will always have a littlt higher harware requirements.
But upgrading your system could be a good option at this time. I just got a PC yesterday for my staff for Rs. 18500. Config = P IV 2.4 GHz, 256 MB RAM, 15" Monitor, CD-ROM, 40GB Hard Disk, On board sound, display and LAN card, etc. See if you can upgrade.