Hi VJ,
see answers inline:
1) I want to know if Cisco router or switches can be configured as MADCAP server.
NO.
2) Can Cisco router or switch support MADCAP messages passed between multicast clients and MADCAP server
MADCAP packets are just like UDP multicast packets so CISCO swtches and routers should be able to support this.
Hope that hepls.
JayaKrishna