There is a new 8051 C compiler in beta test that beats Keil's compiler by 35% code size, and 14% speed, on the Dhrystone benchmark. And, there is no need to select a memory model or use special keywords to control data placement.
More details here: www.htsoft.com/.../silabs8051beta
Erik, I remember the XA, but not you, I'm afraid. But then I think I've forgotten more than I know, so don't take it personally :-)