Hi Anbu,
Below code:
awk -v pat1="05T00NPQSMR1" -v pat2="^[*]{3,}" '$0~pat1,$0~pat2' awtest

& Vish,
Below code:
sed -n '/05T00NPQSMR1/,/*\{58\}/p' input

Both outputs are:
** 05T00NPQSMR1 P98P2234 Tue 10 03 09:57:24 2006
** dibid= 1166 testerid= 6
** sample= 100 0
** tasM= MFMM xx xx xx
** tasC= MFMC xx xx xx
************************************
xxxx
yyy
zzz
blah
blah
**********************************************************
** 05T00NPQSMR1 P98P2234 Tue 10 03 09:57:24 2006
** dibid= 1166 testerid= 6
** sample= 100 0
** tasM= MFMM xx xx xx
** tasC= MFMC xx xx xx
************************************

But what i need is :

** 05T00NPQSMR1 P98P2234 Tue 10 03 09:57:24 2006
** dibid= 1166 testerid= 6
** sample= 100 0
** tasM= MFMM xx xx xx
** tasC= MFMC xx xx xx
************************************
xxxx
yyy
zzz
blah
blah

Pls help. Thanks