Cpu led and ram led on boot

Hi, The CPU requires a newer BIOS version.
Check the original BIOS (a barcode sticker on the motherboard - the last 4 digits stand for the board's BIOS version).
If older than 3201, you would have to update the BIOS for the CPU to work.
Some options: buy a BIOS chip and replace the board's one (it's on socket), or use a supported CPU for flashing the BIOS, or contact the retailer and see if they can help.
If newer than 3201, try testing the board outside the case with a minimum configuration. Check all connections (24 and 8-pin power cables, if RAMs are correctly inserted a.s.o).

ok its older  what do you think would be the best and cheapest way to do it?thanks so much for your help

It depends. If a local shop available, ask them if they can program a BIOS chip and how much it would cost.
A BIOS chip flashed with the latest version is about 15$ on ebay. If in US, you can order one from ASUS eStore. It's easy to replace it:
http://www.youtube.com/watch?v=pLEQoWRq41k
If ordering one, make sure it's exactly for your board's model, as there are other several ASUS Z68 models.
Or, if you don't hurry, you can try RMA-ing it and asking for a BIOS update.

thanks very much thought i was going to have to get a new mobo.is this one ok for my model http://www.ebay.com/itm/BIOS-Chip-ASUS-P8Z68-V-GEN3-/40...

Yes, it is.
Take care at the chip's position for correctly installing the new one. Good luck!