With some help from another forum I was able to upload code and this issue is closed.
BUT QUESTION FOR THIS FORUM:
Is it possible to convert this and some other codes from 8051 frame to a more friendly Microchip PIC we are using now?
Any software packages available for this?
It would be off topic at avrfreaks.net because that is a forum for AVR microcontrollers, but I knew he would find help there anyway (even if he got a little grief for being OT).
There are a lot of upgrade paths for the 8051 that will let you use the same code with only minor changes. Switching you code to PIC is probably more trouble than its worth especialy if its all in assembly.
I'd recommend Silicon Labs 8051s. They have built in JTAG debug which makes them really easy to debug: you can set breakpoints and step through the code on the hardware itself. They are also faster than the PIC and should need only minor changes to the code.