Lpc2000

> static void timer0ISR(void) __attribute__
> ((interrupt ("IRQ")));
> 
> static void timer0ISR(void)
> {
> if (IO0PIN=0) 
>   {
>   IO0SET=LED;
>   }
>   else
>   {
>   IO0CLR=0;

Is this some typing error ???
Should be:

IO0CLR = LED;

Also try adding a default ISR or write this:

VICDefVectAddr = (unsigned long)timer0ISR;

And see what happens.

Regards
Zdravko

\u0417\u043d\u0430\u043d\u0438\u0435\u0442\u043e \u0435 \u043b\u0438\u0447\u043d\u043e \u043f\u0440\u0435\u0436\u0438\u0432\u044f\u043d\u0430 \u0438\u0441\u0442\u0438\u043d\u0430.

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