It suppose to light a led when the input from the A/D is greater or equal to 101010(bin). the problem is, that the led is light all the time....
the led is named Phone. I changed the code as you said:

org 0000h
ljmp 0100h

AD_OUTPUTS EQU P0 ; DB0 to DB7

AD_CLK BIT P2.3 ; clock
AD_ALE BIT P2.4 ; address latch enable: to enable that one of the inputs will start recieving information.
AD_OE BIT P2.5 ; output enable
PHONE BIT P2.7 ; MICROPHONE
AD_SC BIT P2.4 ; start conversion
AD_EOC BIT P2.6 ; end of conversion

;;;;;;;;;;;;;;;;;;;;;;;;?????;;;;;;;;;;;;;;;;;;;;;;;;
int:
;--INITIALIZE A/D
clr AD_OE
clr AD_ALE
clr AD_CLK
lcall START_CONV
lcall START_CLK

begin:

	lcall START_CONV
	lcall compare
	jmp begin
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;FUNCTIONS;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

START_CONV:

	mov AD_OUTPUTS,#0ffh

	clr AD_OE ; enabling the A/D send information

	setb AD_ALE ; start converter [SET both Start Conversion (SC) and Address Latch Enable (ALE)]

	clr AD_ALE ; start converter [SET both Start Conversion (SC) and Address Latch Enable (ALE)]

   Ret

START_CLK:

	cpl AD_CLK ;change the clock variable

	jnb AD_CLK,START_CLK ;if the clock variable is 0, return back and set it to one. if it's one, continue. (was EOC)


	setb AD_OE
	mov a,AD_OUTPUTS
	clr AD_OE
   ret

Compare: 

	CJNE A,#101010b,acc_ne
	JMP acc_equal

acc_ne: 
	jc acc_small
	jmp acc_large

acc_equal: 
	lcall bip
   ret
acc_small: 
	lcall ok
   ret


acc_large:  
	lcall bip
   ret
ok: 
	setb phone
   ret
bip:
	clr phone
   ret

END