I'm using a non-polar 10 uF capacitor from reset to VPP, and an 8.2K resistor in parallel to GND for the reset. The reset pin keeps about a 0.2 Volt reading.

The code is in the flash. Heres the code I'm using to test with.

#include <at89x52.h>

void main(void)
{
P1_1 = 0;
P1_2 = 1;
P1_3 = 0;
P1_4 = 1;
P1_5 = 0;
P1_6 = 1;
P1_7 = 0;

while(1)
{

}
}

Something strange is about every 20th reset, it actually works.

-Chris