DearAndy,
Hope this attempt at pasting the code is fine. This program is essentially the same though still there is only partial success.
1. I'm using a standard kit from a vendor that has been used in the past
2. if I change the "sec_cnt" variable to data type "unsigned int" or "unsigned long int" then the program does not process & the built in simulator does not proces "sec_cnt" at all.

Thank you.

...insert code here[/#include <Intel8052.h>
#include <standard.h>


BIT RS P0.0;
BIT RW P0.1;
BIT E P0.2;
BIT LED P2.0;
BIT LED2 P2.1;
// data pins to LCD P0.4 to P0.7//
unsigned char p0data;
unsigned char temp;
unsigned char ch;
unsigned char sec_cnt;
char message[33] = "Vaishakh Chavan is here         " ;

interrupt (INT_TMR0) timer0isr () using 1
{
// INT_TMR0 is a #defined constant
// it is defined in STANDARD.H which is #included in this program
// This ISR uses register bank 1
	TH0 = 0xd8 ;		/*Reload timer */
	TL0 = 0xf0 ;
	sec_cnt -- ;
	if (!sec_cnt)
	{
		sec_cnt = 1000;
		LED = ~LED ;
		LED2=~LED;
		
	}
}

void lcd_enable()
{

	E=1;
	//delay(500);
	E=0;
	delay(500);
}

void lcd_writecom(unsigned char ch)// writing commands to LCD  //
{
	unsigned char temp;
	 temp=ch;	 
	 temp= temp & 0xf0;
	 temp=temp|0x08;	// holding P0.3 high //
	 P0=temp;
	 lcd_enable();  
	 
	 temp= ( ch << 4s);
	 // move Lower nibble to higger nibbble //
	 temp= temp & 0xf0;
	 temp|=0x08;	// holding P0.3 high //
	 P0=temp;
	 lcd_enable();  
}

void lcd_writetxt(unsigned char ch) // writing data to LCD  //
{
	unsigned char temp;
	 temp=ch;
	 temp= temp & 0xf0;
	 temp=temp|0x09;	// holding P0.3 high & RS set to data mode //
	 P0=temp;
	 lcd_enable();  
	 
	 temp= ( ch << 4s);
	 	// move Lower nibble to higger nibbble //
	 temp= temp & 0xf0;
	 temp=temp|0x09;	
	 P0=temp;
	 lcd_enable();  
}

void display_lcd (char arr[])
{
// displays first 16 characters in the string on line 1 and
// remaining 16 characters on 2nd line
// assumed 16 X 2 display
	unsigned char count ;

	lcd_writecom(0x80) ;	// first line
	for(count=0;count<16;count++)
	{
		if(arr[count])
			lcd_writetxt(arr[count]) ;
		else
			return ;	// if string is < 32 chars, return
	}
	
	lcd_writecom(0xc0) ;	// second line
	for(count=16;count<32;count++)
	{
		if (arr[count])
			lcd_writetxt(arr[count]);
		else
			return ;	// if string is < 32 chars, return
	}
}


void main ()
{
// LCD initialization //
	P0=0xff;
	delay_ms(250);
	p0data=0x08;		// unused pin pulled high
	P0=p0data;
	delay(5000);		//lcd_init();// initialize the display
	lcd_writecom(0x01);	
	delay(5000);
	lcd_writecom(0x28);
	delay(5000);
	lcd_writecom(0x08);	
	delay(5000);
	lcd_writecom(0x0C);	
	delay(5000);
	lcd_writecom(0x06);	
	delay(5000);


	TMOD = 0x01 ;
	TCON = 0x10 ;
	TH0 = 0xd8 ;	// Initial value
	TL0 = 0xf0 ;	// such that Timer0 will overflow every 10 ms
	lcd_writecom(0x01);
	IE = 0x82 ;	// enable timer0 interrupt
	while(1)
	{
		display_lcd(message); // display the message
		lcd_writecom(0xc8);
		lcd_writetxt('X');
		
	}
}
]