AT89LP6440 Simple Blinky

Hello,
I've been trying to burn a simple "Blinking LED" program on the AT89LP6440 MCU with no luck. I am using Keil Uvision 4.0, and there are no compilation errors or warning for the code below:

#include <AT89LP6440.H>
sbit led = P2^0;
void delay(long i)
{
        for(i=0;i<i;i++);
}
void main()
{
        while(1)
        {
                led=1;
                delay(20000);
                led=0;
                delay(20000);
        }
}

Am i missing anything? The multimeter shows that P2_0 just stays HIGH (5 Volts).

Thanks,
Ben