Thanks Michael. However I still cannot get the program to output to the screen. I'm attaching the code below. I use the Keil compiler to first assemble the code. Then I use hper terminal to send the hex file to the 8051. Finally I enter the starting address of assemled program and the program executes. This is were I'm not sure what should happen. WhenI press keys from my keyboard nothing happens. I think its because the program is continuosly looping right? How do I capture the keys and output them to screen?

Once again thanks for your help and all the other guys who answer the queries.

START EQU 8100H

ORG START

MAIN:
LCALL INIT
LCALL INCHAR
ANL A, #05FH
LCALL OUTCHAR
JMP MAIN

INIT: MOV SCON, #52H
MOV TMOD, #20H
MOV TH1, #0FDH ; set baud rate 9600
SETB TR1
RET

INCHAR:
JNB RI,$
CLR RI
MOV A, SBUF
RET

OUTCHAR:
CLR TI
MOV SBUF,A
AGAIN: JNB TI, AGAIN
RET

END