ok,now the situation is a bit clear. Also you connected the LED worng way to 89C51.

Just connect as Alferado recommended.

Also remove the LED, check EA to be at 5V, and with your multimeter, check the port pin to which LED was connected. It should toggle, and if the frequency is high, your meter should read about 2.5 V approx (assuming a 50% duty cycle)

Once again, does any other program runs in your 89C51 board?? I mean the baord and CPU are verified??

IA