All..

Problem Solved!!!

Rule 1: Never overlook the SIMPLE solutions, they are the easiest to fix and cause the most headaces. As Murphy's Law dictates; if it can go wrong, it will.

Well, here it is, the solution:

Well after narrowing down the code to two simple DJNZ statements and analyzing the hex codes, it was found that code was not the problem at all. The Motorola RTC (real time clock) that was in the circuit (although not being addressed) was causing some sort of an invalid bus condition, during the delay routine. I tried every approach in software, only to find out that as soon as I cut the Xtal to the RTC the program started working. Go figure... I would just like to thank all of you for your help, code and encouragement, its nice to know that you can still find good help ;)

Ben