Got it working!!! The file DS80C320.h has the following errors in it.
/*------------------------------------------------
DS80C320 SCON1 Bit Registers
------------------------------------------------*/
sbit RI_1 = 0xC8;
sbit TI_1 = 0xC9;
sbit RB8_1 = 0xCA;
sbit TB8_1 = 0xCB;
sbit REN_1 = 0xCC;
sbit SM2_1 = 0xCD;
sbit SM1_1 = 0xCE;

sbit SM0_1 = 0xCF;
sbit FE_1 = 0xCF;
sbit SM0_FE_1 = 0xCF;

They should be:
/*------------------------------------------------
DS80C320 SCON1 Bit Registers
------------------------------------------------*/
sbit RI_1 = 0xC0;
sbit TI_1 = 0xC1;
sbit RB8_1 = 0xC2;
sbit TB8_1 = 0xC3;
sbit REN_1 = 0xC4;
sbit SM2_1 = 0xC5;
sbit SM1_1 = 0xC6;

sbit SM0_1 = 0xC7;
sbit FE_1 = 0xC7;
sbit SM0_FE_1 = 0xC7;
With these changes the dual port code works as easly as it should.

Thanks to Gary Culp at Keil for the Help.