I got a pleasant surprise. Avant Window Navigator is being actively developed and it's latest version (avant-window-navigator-trunk) adds a number of plugins for more eye candy and functionality. And after getting the latest version and playing with some themes above desktop is what I got hold of.
1. Ubuntu 10.04 LTS
2. Avant Window Navigator from trunk :
Add http://ppa.launchpad.net/awn-testing/ppa/ubuntu lucid main to other sources in Software Sources dialog. And do a sudo apt-get update && sudo apt-get install avant-window-navigator-trunk && sudo apt-get install awn-extras-applets-trunk in terminal.
3. Emerald (emerald and emerald-themes)
Add a startup entry as Emerald with command as "emerald --replace" without double quotes.
I haven't shown emerald window decorations here but the window title and borders look like this: