To check the circuit, i got my hands on an Atmel 89c51rc2 and put the program in it. With the new chip, the circuit worked fine. I have not checked with a scope to see if the osc was working with the first chip but i am a little stummped.
That probably indicates that the first chip was not programmed (correctly)

Also i wanted to know if the (please don't yell) reset RC circuit could possibly have an effect on one chip and not another.
when you work in grey you never know when it is seen as white and when it si seen as black.

Erik