Erik, just to try the ports after you told me they could bad. I tested the pins for SPI as regular ports. They are all on P2. So I could use the LEDs on this port. They lit alright. Is this test appropriate? I refuse to the idea that these pins could be bad. I tested the same program with lpc932 and lpc936. Same results. I was thinking that using the SPI you will need a pull up resistor for the MISO pin on the micro, since this pin is an input one and needs to be high...what do you think? Also,
I may think that the ISP peripheral could be bad or that the software from Keil could be giving problems. I will try the same thing using UV2 instead of UV3. I posted a message on flash magic forum and Andy saiys that the forum is for ISP only. Here is his response.
".....note that this forum is for discussion of Philips ISP. You might want to try posting your question at 8052.com.

Andy
Embedded Systems Academy
support at esacademy dot com"

Thanks!