Mike,

here's the answer I got from Atmel tech support. I didn't have a look at the CC01 datasheet, so I don't know nothing about the encryption unit, but may be the CC01 is delivered with the "highest security level", too.
At least, lucky you has got a parallel programmer, that may be able to "lower" security!

HTH
-uwe

<snip>
T89C51RD2 has the maximum security level : no external execution is
allowed . This security level is by default on delivered parts.

You have to change the security level lower one to allow the external
execution. The security levels can only be programmed by parallel
programmers.
<snip>