While exporting the query result to excl, one of the fields is getting truncated, Is there a way that I can avoid that ?
Use DTS with SQL Server as a data source and Excel as the data location
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If you are using the export wizard, you can change lengths of columns. I have done this on import but have not on export.
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You can try exporting the query to Excel 2000 file format by following these steps:
In the Database window, select the table or query on which the report is based.
On the File menu, click Export.
In the Export Table '<Table Name>' dialog box, select Microsoft Excel 97-2002 (*.xls) from the Save as Type box.
Click Export All to export the table.
Hope this helps 
The query results I am geting is shifting to the next line in EXCL, Is there any way to fix this using REPLACE ?
select t.[Order set Name],t.[Item Name],RTRIM(LTRIM(REPLACE(t.defaultvalue, '#', '?','-','*',' '))) from #tmp t
where defaultvalue<>'' and defaultvalue <>'0'
group by t.[Order set Name],t.[Item Name],[Default Value]
drop table #tmp
*/