Hello Lundin,
The '9S08SG32 includes an ICS module, and the power up default is FEI mode, that uses the internal reference. The XTAL and EXTAL pins will initially default to GPIO, which would remain unless configured for an external reference. So there would be little to observe with an oscilloscope.
This would be the situation for the majority of '9S08 devices.
Hello Kapil, and welcome to the forum.
Do you supply Vdd to the MCU from an external source, during programming? The USB Multilink Interface does not supply power via its Vdd connection. This is a voltage input to the Multilink.
Regards,
Mac