>> how can I manage MSDE through command line without osql and if I install MS SQL, will it interfere with my current MSDE database?
Ok, Kindly confirm whether you have MSDE already installed in your machine or not first since MSDE has osql installed by default.
Below link guides you how to manage MSDE using osql
http://support.microsoft.com/kb/325003And if you install MS SQL, then it will not interfere with the MSDE instance's database as it would create a new instance and have all databases in it.