Depending on how crucial it is for login to take place in your console, I would suggest using Web2py's built-in login functionality (at least in the beginning) and then once users are logged in, show them your app. My guess is that the login part is not integral to your app so it might make sense to take advantage of that built-in functionality and then concentrate on the unique aspects of your application.
The interactive console part is going to be trickier. I didn't really see any good options with a quick Google. Here's one but no instructions on if or how you might hook it up to your app: http://www.w3clubs.com/sp/ajax/webconsole.html I would think there would be a generic, Ajax/JavaScript component that you could just drop in to your pages which would accept the user's input, send it to you like a regular web page request and then you return text to be output onto the screen.
