Disclaimer first, I do not know anything about Amtel. However, I will do my best.
You need to look up what "mode 2" means for the timer. Does it count up? Count down?
The timer appears to be set to auto-reload, that probably means it will keep going after the first overflow (or underflow). It will output the value on the pins of p1 (port one?). However, I do not know what the delay will be. It does not appear that there is any delay in the timer steps, so it will probably run at full speed and count faster than you can see.
The function msdelay() is never called, so it is quite redundant.
Do not forget code tags around your program next time, it makes it easier to read.