I'm not a basic programmer, but I do notice that you never reset your x and y variables
I don't know why it never goes to the aux part, but from what I read it should be doing main 10 times, then do aux 10 times, then do main once, aux once and keep doing each of them once over and over (not 10 times, since you never set x or y back to 0)
also, you say it's supposed to flash two LED banks? but it looks like it's just changing bits 3 and 4 on port B, both main and aux seem to flash the same two bits?