I installed the OS and found out that there is no support for the Compaq MV540 monitor although support was available for Compaq MV500 and MV700 models.

Please let me know how to solve this problem.

Go to compaq's support site and find out the technical specs for the monitor, the vertical and horizontal refresh rates. Every monitor is supported, just some aren't listed. When you find these values then either during the install you can choose custom monitor or after it's been installed you can try to reconfigure X and input these values.