Mikkel,
Have you tried this? Putting nothing in the while loop?

#include <89LP214.h>
#include <absacc.h>
#include <stdio.h>

#define OUTP1 P1_6
#define OUTP2 P1_4
#define OUTP3 P1_1
#define OUTP4 P1_0


void main(void)
{
TMOD = 0x11; //Setup timers - 2 * Mode 1
CLKREG = 0xF0; //Divider timerclock med 16
P1M0 = 0x00; //P1 i output mode
P1M1 = 0xff; //P1 i output mode
TR1 |= 1;
//EA |= 1;
PCON |= 1; //Start idle mode (go to sleep)

while(1)
{
}
}