What does it mean when you have an "unresolved external symbol"? The manual claims that the variable is not PUBLIC, however, I don't see how that's the case. I am getting warnings L1 and L2 when I put the following line in one file:
sbit var1 = P1 ^ 7;
extern bit var1;
Have you put the sbit definition at "file" scope; ie, not within any function? Also, look through the thread bdata across multiple files? http://www.keil.com/forum/msgpage.asp?MsgID=2299 and associated references