Please check if you have you configuration manager setup properly as stated in Chapter 5 Setting Up the Install Workstation, Task 5-3: Editing the Default Profile of the PeopleTools Installation Manual
You probably do not a correct pointer to you PS_HOME.
Go to PS_HOME\bin\sqr\ora\BINW\ and right click on sqrw.exe and from the popup menu choose Send to Desktop (Create Shotcut)
Right click on the newly created shortcut on your desktop and from the popup menu choose Properties.
In the target field append the command with the following
Maybe stupid question, but have you checked if E:\PS_HOME\sqr\pssqr.ini exist ? Hopefully E:\PS_HOME\sqr is not empty.
Is it Oracle db ?
Here an example within command line : Re: Launche DDDAUDIT from commande line