1:
.org 0000h
ljmp INIT
.org 0023h
ljmp SINT

INIT acall LCDINIT
mov DPH,#0
mov DPL,#0
acall EEPROMRD
mov myID,A
mov DPL,#1
acall EEPROMRD
mov reammo,A
mov ammo,reammo
mov DPL,#2
acall EEPROMRD
mov wait,A
mov DPL,#3
acall EEPROMRD
mov lives,A

acall SPLASH
;delay

clr TR1 ;stop timer 1
mov TH1,#0D0H ;1200 baud
mov TL1,#0D0H
anl TMOD,#0FH ;Timer1: 8 bit auto-reload
orl TMOD,#20H
setb TR1 ;start timer
mov SCON,#50H ;InitRS232
clr TI
orl PCON,#80H ;SMOD=1
mov IE,#10010000b
acall LCDSTAT

MAIN jb P3.2,MAIN
acall SHOOT
lus5 jnb P3.2,lus5
ljmp MAIN

2:
is this better? I removed the first two lines because it got stuck there for some reason...

TX jnb TI,TX
clr TI
mov SBUF,A
ret

3:
the receiving uses the UART interrupt, but I don't know how it is easyer to user the UART for the sending as well.