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From what I've heard, people are maintaining speed of 850-900 Kh/s. I've tried so many different setting and configurations, is my card defective?

I'm no expert but I think you are not tuning it right.  I started with ~700kh/s too and let it run for a couple of days before I finally got it to ~900's.  What model do you have and your config?

SAPPHIRE TRI-X OC 100361-2SR Radeon R9 290X 4GB 512-Bit

My config is:
"intensity" : "20",
"xintensity" : "0",
"rawintensity" : "0",
"worksize" : "256",
"kernel" : "scrypt",
"lookup-gap" : "2",
"thread-concurrency" : "24550",
"shaders" : "0",
"gpu-threads" : "1",
"gpu-engine" : "945",
"gpu-fan" : "90",
"gpu-memclock" : "1500",
"gpu-memdiff" : "0",
"gpu-powertune" : "20",
"gpu-vddc" : "0.000",
"temp-cutoff" : "90",
"temp-overheat" : "85",
"temp-target" : "75",
"api-mcast-port" : "4028",
"api-port" : "4028",
"expiry" : "120",
"failover-switch-delay" : "60",
"gpu-dyninterval" : "7",
"gpu-platform" : "1",
"log" : "5",
"no-pool-disable" : true,
"queue" : "1",
"scan-time" : "60",
"tcp-keepalive" : "30",
"temp-hysteresis" : "3",
"shares" : "0",
"kernel-path" : "/usr/local/bin"

Which program and version is best to use ?
I have the same problem with mine. It doesn't want to run on scrypt higher than 730~760khash
I have an MSI OC gaming. (1500MHz  on mem on my card is a no go and instant crash)

Ah can't help you.  I've only used cgminer for scrypt and now only run nscrypt vertminer.  I'm not familiar with sgminer at all.  If config should be same, your thread concurrency could be too low.  Start with 32765 which is typical TC for 290x based on what I read on forums.  I was able to optimize mine using 33791 so try this too.  Increase the temp target and overheat temporarily while tuning to make sure your card isn't throttling.  Don't define engine and memclock when you start up sgminer.  Let the miner choose the default settings then while running tune memory and engine.

I have MSI OC gaming too.  All will crash at 1500MHz.  One max at 1350Mhz, couple others max at 1400Mhz.  Also I have to disable auto-fan for these cards otherwise they will crash.  All other models I have auto-fan enabled and runs fine.

I used cgminer 3.7.2 on Linux.  Don't know if it's the best to use.

Your intensity is wayyy too high. I've often found that intensity of 10-12 yields the best hashrate.

Sorry for the delay in response, went on short vacation.

@Wolf0 Stilt's BIOS really helped! I'm up to 875-900 Kh/s with your settings.

@jrrsparkles I tried bringing down the intensity. At 10-12, my hashrate is 144Kh/s... 20 works better for me.

Question: How much can finding the "perfect" TC help my hashrate? Should I put in the effort to do trial and error?

290s like high intensity. I run mine at xI 500. Your TC is low. Try bumping it up until your khs goes down.

I'm not sure why you're running I, xI and rI... Even though some are at 0, I would remove the ones you don't use.