"This is not a job for the compiler, it is a job for the programmer(set a SFR)"

Erik,
That was already done.
Setting(or clearing) this bit will map the physical external ram or use the internal (xdata)ram, but the compiler or linker must place the variables in the various xdata (or EDATA) space of the microcontroller, which is not happening.

Andy,
Thanks for the links, I will go through them and hope that helps.

Regards,
John.