Instead of arcade i will use a PC monitor,actually i am looking towards
different Pc monitors work with it.I think that any kind of Pc monitor will
auto-detect Video modes in advmame (Linux) and no need to waste a lot of time getting Video modes.As i saw that Advance CD is just for Normal PC monitors,am in right.?
My cocktail cab uses a normal 17" PC monitor, and advmame+linux+svgalib work just fine. I've got a JAMMA cab waiting for conversion that will use the same setup with a 15KHz Kortek monitor.
I am in little confuse about Linux distribution.I did Linux End user training using RED HET linux,while other people are using different Linux distribution.Which One is the Best for Cab setup.
There is no "best distro". Use whatever you're comfortable with. Most distros are pretty similar anyway in terms of where stuff lives. A few put various scripts in different places, but it's all easy enough to pick up once you start using it.
One thing to remember is the RedHat Certifications teach you how to do things with the RedHat tools. Often these are just frontends that editthe real scripts for you. Something like LFS (Linux From Scratch), Debain, Slackware or Gentoo would probably get you used to the real nitty-gritty of Linux configuration. But again, it's not necessary at all if you just want a functioning cabinet.
Linux setup is looking quite better than Dos.
which one is better ? DOS or Linux. 
Sounds like you answered your own question there.

Seriously though, Linux has up to date and definitely more recent driver support for graphics cards, sound cards, northbridge and memory controller chipsets, all without the need for a full-blown and bloated GUI. Unless you're running very old pentium or 486 hardware, Linux does have the advantage over DOS there.