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We are using DhtmlGrid functionality with jsp/servlet as a backend and sql server 2005 as db. our task is 1. to save data into db. 2. retrive data from db and to populate into grid. 3. Can we do this without help of xml?

Grid can load data and serialize back to CSV, but sume features works only with XML.
Using XML as datasource doesn't mean than you need to use static XML files, you can use
    grid.loadXML(my.jsp);
where JSP script will connect to DB and generate XML response.

I can send you JSP based sample of such functionaltiy. ( The pro package contains sample of usage JSP with dataProcessor, which are allows full syncing between DB and client parts )