Hello all,
I would like to setup an Intractive Voice response system. Can i setup this with Asterisk or is there any better programs which will best suit for my purpose.

Thanks in advance.

yes, Asterisk is a very easy way of providing an IVR.

Have a look in the sticky for the link to the book Asterisk: The Future of Telephony. It is a great resource for learning asterisk. Once you start picking it up, it shouldnt be too hard to set up an IVR.