Question : Vlan Tagging

Is it necessary to have switch as well as enduser ( desktop computer/ethernet card ) to be 802.1q compliant for setting up Vlan on a network.

Is their any work around to this.

Answer : Vlan Tagging

Make the vlan's on the layer 3 switch, to make them routable. Then make them on the switch that is the root bridge (on a cisco with catalyst software you can force that with set spantree priority root). Then connect the switches to the layer 3 switch, using dot1q-trunks. You can use the vlan's you've configured on every layer 2 switch you connect through 802.1q.
But this is just one of the possibilities. You can also go for a vlan per switch. You don't even have to use 802.1q then. Then you can go for vlan 1 (standard) on all of the ports of the switch.