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I would like to build standard menu based website using portlets.Can i have two portlets one for menu and another for display?
Is it possible to load pages in 2nd portlet based on clicking a link in 1st portlet?Please help can i achieve this using event based IPC?
Yes, you can have different portlets for menu and display. You can use event-based IPC for inter-portlet communication for the two portlets.
Though, this doesn't look like a scenario in which you should be using portlets.
see menus and navigation links are part of any portal server's page, you should look into how to customise themes and skins in correpondence to your portal solution.
I am sure you will find much easier and less messy way to do this.