Here is the "hopefully" the final go round, I ran it through and it seems to do a very nice job. Original code size was 912 bytes, now reduced to 726 bytes. I have an ocean of space @ 16KB using the LPC936, but it makes for a more efficient and better coding technique and with the added bonus of learning a bit more.....thanks folks.

void RS232_Write(unsigned char reg, unsigned char dat0, unsigned char dat1)
{

unsigned char REG_H, REG_L, DAT1_H, DAT1_L, DAT2_H, DAT2_L, CHECKSUM_H,
			  CHECKSUM_L, CHECKSUM_T;

REG_H = Hex2Ascii(reg >> 4);	  // do the Upper Nibble
REG_L = Hex2Ascii(reg & 0x0F);	  // do the Lower Nibble

DAT1_H = Hex2Ascii(dat0 >> 4);	  // do the Upper Nibble
DAT1_L = Hex2Ascii(dat0 & 0x0F);  // do the Lower Nibble

DAT2_H = Hex2Ascii(dat1 >> 4);	  // do the Upper Nibble
DAT2_L = Hex2Ascii(dat1 & 0x0F);  // do the Lower Nibble

CHECKSUM_T = (cam_header + cam_ID_H + cam_ID_L + REG_H + REG_L + DAT1_H + 
			 DAT1_L + DAT2_H + DAT2_L);

CHECKSUM_H = Hex2Ascii(CHECKSUM_T >> 4);	// do the Upper Nibble
CHECKSUM_L = Hex2Ascii(CHECKSUM_T  & 0x0F);	// do the Lower Nibble

//***********************************************************************
uart_init();
uart_transmit(cam_header); 	Wait(2); 	// header
uart_transmit(cam_ID_H); 	Wait(2); 	// ID H
uart_transmit(cam_ID_L); 	Wait(2); 	// ID L
uart_transmit(REG_H); 		Wait(2); 	// Register H
uart_transmit(REG_L); 		Wait(2); 	// Register L
uart_transmit(DAT1_H); 		Wait(2);	// Data 1 H
uart_transmit(DAT1_L); 		Wait(2);	// Data 1 L
uart_transmit(DAT2_H); 		Wait(2);	// Data 2 H
uart_transmit(DAT2_L); 		Wait(2);	// Data 2 L
uart_transmit(CHECKSUM_H); 	Wait(2);	// Send calculated checksum 1
uart_transmit(CHECKSUM_L); 	Wait(2);	// Send calculated checksum 2
//***********************************************************************
}

unsigned char Hex2Ascii(unsigned char HexValue)
{
return "0123456789ABCDEF"[HexValue];
}