Thanks to the help of the avrfreaks & 8051projects forums I have solved my first hiccup. The wiring was wrong, Port 0 pins are earthed unless a value is written to them, so I was trying to make the voltage flow the wrong way.
I proved my code was being run on the chip by creating a program that simply turned off pin 1 and did nothing else. Tested, worked as expected, then modified it for pin 2 and so on.
The code is fine, as the simulator in keil's IDE proved, the big issue facing me atm is how do I slow down the code enough to see the leds blink when Im using my LED chaser code.
avrfreaks forum thread
8051 forum thread