here is the program...I hope someone sees the problem.
I did not include LCD software definitions and procedures because that is not a problem at all.
thanks for all of your help!

J.C.


#include <Reg932.h>
#include <stdio.h>
#include <String.h>
#include <intrins.h>
#include <absacc.h>
#include "definitions.h"

/**************Main code starts here**************/
extern void delay1 (unsigned int z) small reentrant {
unsigned int a;

for (a = 0; a < z; a++) { //waste time
;
}
}

void Main(void)
{

OCA = 0; OCB = 0; OCC = 0; OCD = 0; P0 = 0x01; P2 = 0x00;
P1 = 0x00; P3 = 0x00; init();
brkrst_init(); initialize_LCD();
CMP1 = 0x00; CMP2 = 0x00; P1 |= 0x18; display(ent);
Sec = 0;
Min = 0;
Hr = 0;
Dy = 0;
c_counter(); //Timer is called here
read_par = 0x1A;

IT1 = 1;
EX1 = 1;
//tdata(); // if I disble External Int. 1 and call tdata from here then it works fine.
while(1)
{
PCON |= 0x00; }
}

void init(void)
{
P0M1 = 0x03;
P0M2 = 0xEC; P1M1 = 0x00; P1M2 = 0xFF; P2M1 = 0x00; P2M2 = 0xFF;
P1M1 |= 0x18; P1M2 &= 0xF7;
P3M1 = 0x00;
P3M2 = 0xFF;
ES = 1; EA = 1;
}

UART break detect
{
SCON = 0x50;
SSTAT = 0x00;
BRGR0 = 0xF0;
BRGR1 = 0x02;
BRGCON = 0x03;
AUXR1 |= 0x80; // Clock Low Power Select
}

void UART(void) interrupt 4
{
RI = 0; // clear receive interrupt flag
}

void c_counter(void)
{
ET0 =1;
//TR0 = 0;
TMOD |= 0x01;
TAMOD = 0x00;
T0_counter();
EA = 1;
//TR0 = 1;
}

void T0_counter(void)
{
TR0 = 0;
TH0 = (65535-34816)/256;
TL0 = (65535-34816)%256;
TF0 = 0;
TR0 = 1;
}


void Card_Present(void) interrupt 2
{
EX1 = 0; // int. is called and disabled
WriteInstrReg (CLEAR_DISPLAY);
display(p_start); // disp. a message
t_counter = 0;
read_par = 0x1A;
tdata(); // Function to display data
// every n Sec is called here
return;
}

void timer0(void) interrupt 1
{
T0_counter();

if (--ticks == 0)
{
ticks = 108;
if (++Sec == 4)
Sec = 0;
}
return;
}

void tdata (void)
{

//Sec = 0;
while(Sec < 3); // wait as long as Sec is < 3
do
{
Sec = 0; // reset Sec counter
read_par--;
WriteInstrReg (CLEAR_DISPLAY);
WriteInstrReg(0x80);
if (read_par == 0x19)
display(mid); // display parameter name

if (read_par == 0x17)
display(sequ); // display parameter name

if (read_par == 0x15)
display(time); // display parameter name

if (read_par == 0x13)
display(costu); // display parameter name

if (read_par == 0x11)
display(tlit); // display parameter name

if (read_par == 0x0F)
display(no_w); // display parameter name

if (read_par == 0x0D)
display(wdt); // display parameter name

numdsp(9, ++recvar, 0, 10000); // display value
WriteInstrReg (CLEAR_DISPLAY);
WriteInstrReg(0xC0); // display line two

while (Sec < 3);
}
while (++t_counter < 7);
}
/**************Main code ends here**************/

/******"definitions.h" file starts here*********/
//All definitions

void init(void);
void brkrst_init(void);

void display (char* dat);
void tdata (void);

void c_counter(void);
void T0_counter(void);

unsigned char ticks = 108, Min, Hr, Dy, read_par;
volatile char Sec; // changed to a volatile type def.
unsigned char recvar = 0, t_counter = 0;

unsigned char code ent [] = "Enter";
/******"definitions.h" file starts here*********/