A little easier to read, but still suffers from the same problems as before.

RS	EQU	P2.5		; RS pin of LCD
EN	EQU	P1.2		; Enable pin of LCD
LCD	EQU	P0		; Port 0 as data port
	;
TITLE:	DB	"PROJECT-GPSH",0  ;<- may need to be 'PROJECT-GPSH',0
MODE:	DB	"MODE",0
ACQUIRING:
	DB	"ACQUIRING GPS",0
NVRAMFULL:
	DB	"NVRAM IS FULL",0 
;---------------------------
	ORG	0
	LJMP	MAIN
	ORG	40H		;<- Leave room for interrupt vectors
MAIN:
	ACALL	CHK_MODE	; check the mode using Pin 1.0 and 1.1
	ACALL	INIT_LCD	; Initialise
	ACALL	DISP_TITLE	; Dispaly Title
	ACALL	DISP_MODE	; Display "MODE"
	SJMP	GOTO_MODE	; jump to mode 
;----------------------------------------
CHK_MODE:
	SETB	P1.0		; Make them as input pins  // USING R1
	SETB	P1.1		;
	MOV	A,P1		; Reading Mode info
	ANL	A,#03H		; Storing P1.1 and P1.0 only
	MOV	R1,A		; Mode info in R1
	RET
;---------------------------------------------
INIT_LCD:			; Initialising LCD
	MOV	A,#38H
	ACALL	LCDCMD
	MOV	A,#02H
	ACALL	LCDCMD
	MOV	A,#0FH
	ACALL	LCDCMD
	MOV	A,#80H
	ACALL	LCDCMD
	MOV	A,#01H
	ACALL	LCDCMD
	RET
;-------------------------------------------
LCDCMD:	  			 ; Command Word to LCD
	MOV	LCD,A
	CLR	RS
	SETB	EN
	ACALL	DELAY_INIT
	CLR	EN
	RET
;----------------------------------------------
DELAY_INIT:			 ; Delay in initialising
	MOV	R7,#0FFH
LOOP_DELAY_INIT:
	MOV	R0,09H		;<- should be R0,#09H ??
JUMPHERE_DELAY_INIT:
	DJNZ	R0,JUMPHERE_DELAY_INIT
	DJNZ	R7,LOOP_DELAY_INIT
	RET
;---------------------------------------
DISP_CHAR:               	; Display Character on LCD
	SETB	RS
	MOV	LCD,A
	SETB	EN
	ACALL	DELAY_CHAR
	CLR	EN
	ACALL	DELAY_CHAR
	RET
;------------------------------------------
DELAY_CHAR:			;Delay  Using R7,R0
	MOV	R7,#0FFH
LOOP_DELAY_CHAR:
	MOV	R0,01H		;<- should be R0,#01H ??
JUMPHERE_DELAY_CHAR:
	DJNZ	R0,JUMPHERE_DELAY_CHAR
	DJNZ	R7,LOOP_DELAY_CHAR
	RET
;-----------------------------------
DISP_TITLE:
	ACALL	CLR_LCD
	MOV	DPTR,#TITLE          ; Display   "Project-GPSH"
NEXT_CHAR_DISP_TITLE:
	CLR	A
	MOVC	A,@A+DPTR	  
	JZ	EXIT_DISP_TITLE		; IF Null then exit
	ACALL	DISP_CHAR
	INC	DPTR
	SJMP	NEXT_CHAR_DISP_TITLE
EXIT_DISP_TITLE: 
	RET
;-----------------------------------------		
DISP_MODE:
	ACALL	CLR_LCD
	MOV	DPTR,#MODE		; Display "MODE"
NEXT_CHAR_DISP_MODE:
	CLR	A
	MOVC	A,@A+DPTR	  
	JZ	EXIT_DISP_MODE		  ; If Null the exit
	ACALL	DISP_CHAR
	INC	DPTR
	SJMP	NEXT_CHAR_DISP_MODE
EXIT_DISP_MODE:
	MOV	A,#30H		; Display Mode Noumber 0/1/2/3
	ORL	A,R1
	ACALL	DISP_CHAR
	RET
;---------------------------------
GOTO_MODE:
	MOV	A,R1		; Checking Mode and jumping to subprogram
	JB	ACC.1,MODE2OR3	; 00= mode 0
	JB 	ACC.0,MODE0     ; 01= mode1 
 	LJMP	MODE_1		; 10= mode 2
MODE2OR3:
	JB	ACC.0,MODE2	; 11= mode 3
	LJMP	MODE_3
MODE0:	LJMP	MODE_0
MODE2:	LJMP	MODE_2
;----------------------------------- 
DELAY:	MOV	R7,A		; USING R7,R0
LOOP_DELAY:
	MOV	R0,#0FFH
JUMPHERE_DELAY:
	DJNZ	R0,JUMPHERE_DELAY
	DJNZ	R7,LOOP_DELAY
	RET
;-----------------------------------------------
DISP_NVRAM_FULL:
	ACALL	CLR_LCD	
	MOV	DPTR,#NVRAMFULL		; Daisplay "NVRAM FULL"
NEXT_CHAR_DISP_NVRAM_FULL:
	CLR	A
	MOVC	A,@A+DPTR	  
	JZ	EXIT_DISP_NVRAM_FULL	  ; If Null then Exit
	ACALL	DISP_CHAR
	INC	DPTR
	SJMP	NEXT_CHAR_DISP_NVRAM_FULL
EXIT_DISP_NVRAM_FULL:
	RET	
;---------------------------------------	
DISP_ACQUIRING:
	ACALL	CLR_LCD
	MOV	DPTR,#ACQUIRING		; Display "ACQUIRING GPS"
NEXT_CHAR_DISP_ACQUIRING:
	CLR	A
	MOVC	A,@A+DPTR	  
	JZ	EXIT_DISP_ACQUIRING	  ; If Null then Exit
	ACALL	DISP_CHAR
	INC	DPTR
	SJMP	NEXT_CHAR_DISP_ACQUIRING
EXIT_DISP_ACQUIRING: 
	RET
;-------------------------------------------
CLR_LCD:
	MOV	A,#01H			; Clearing LCD
	ACALL	LCDCMD
	MOV	A,#80H			; Cursor at start of line 1
	ACALL	LCDCMD
	RET
;--------------------------
SET_SRL_MODE_0:
	MOV	TMOD,#20H		; TIMER 1 , AUTO RELOAD MODE
	MOV	SCON,#50H		; 8N1
	MOV	TH1,#0FDH		; 9600 BAUDS
	MOV	A,PCON			; Double the Baud
	SETB	ACC.7
	MOV	PCON,A			; BAUD Set at 19200
	SETB	TR1			; Start Timer T1
	RET
;---------------------------------------------
MODE_0:
        MOV	IE,#0H			; Disable Interrupts
	ACALL	DISP_ACQUIRING
	ACALL	SET_SRL_MODE_0
	MOV	A,#0FH
	ACALL	DELAY
	MOV	DPTR,#0000H	
CHK_NVRAM:			; Check if 8Kx8 NVRAM full. Address 0000H TO 1FFFH
	MOV	A,82H		; DPTR Lower byte (DPL) To ACC
	CLR	C		; Clear Carry
	SUBB	A,#0FFH 	; compare Lower byte with FF
	JC	WAIT_HERE
	CLR	C
	MOV	A,83H		; DPTR higher Byte (DPH) To ACC
	SUBB	A,#1FH		; Compare higher byte with 1F
	JNC	FULL		; If = or > the jump to full
WAIT_HERE:
	JNB	RI,WAIT_HERE	; Wait for character to come in
	MOV	A,SBUF		; Get Received Byte in ACC
	MOVX	@DPTR,A		; Store in external RAM
	INC	DPTR		; Incrdement pointer
	SJMP	CHK_NVRAM	; check RAM status
FULL:	ACALL	DISP_NVRAM_FULL ; Display RAM is Full
	LJMP	LAST

MODE_1:	NOP			; To be programmed 
MODE_2:	NOP			; To be programmed 
MODE_3:	NOP			; To be programmed 
LAST:	NOP
END