This is good we have established that the EQU directives I was using do work, I have found some very good documentation from the ASM51 cross converter manual, from MetaLink, on that subject. It also covered how to use DATA and BIT but I’m still not %100 sure of how they work.

From the code I posted you can see that I wanted to declare two bytes of data and two bits of data.

 The bytes were for registers that would help me count out sequences for loops and also to contain important numbers that dominate the code direction.
 The Bits are to represent flags to control other functions like error detection and higher level decision making.

My problem now is that I do not know the significance of the memory location that I choose for them, keeping in mind that the bit addresses should probably be bit addressable. Up until now I have been discouraged from using the R1-7 registers due to code compatibility, my code is just a small part of a much larger project.
If you were writing a program with these needs how would you declare this data?