Hi Zaleha,
I think Moodle is a very good and capable LMS. USM is actually now using Moodle as our LMS. I have no direct experience installing Moodle myself but I understand it's not that difficult. Should you need any assistance, perhaps I can get you in touch with my friend. Meanwhile, may I invite you to visit my website (http://www.elearning-onestop.com/) and view my online course running on Moodle (http://www.elearning-onestop.com/elearning%20_showcase.html)
Karim