Some followup. Can you tell us exactly where your sage is located? (E.g., is it the "app" version or only the terminal version?) sage -sh definitely should not start any notebook operations, ever. Where are you running this command from? If you haven't added sage to your PATH then maybe this is the problem.
You should be cding into the SAGE_ROOT directory, which will depend on your installation, and then the command ./sage -sh should be correct.