If the program isn't running then the DS1232 must be very unhappy. Possibly your interrupt structure is not properly set up, causing unexpected interrupts vectoring into who-knows-where?
You indicate using an 80C320, which has no internal code memory. Is your external address latch set up properly? If you are using the wrong type of latch your program will never start.
I'm not familiar with the DS1232 but if your program does not run then I suppose the 1232 watchdog must be constantly kicking the 80C320. Could that be the 5khz you are seeing on INT1? If you are certain that your hardware is ok, you might try posting your code here and maybe someone will find something.

Hal