Trying to make code smaller

[aratti]

I don't know if the setting are correct since I have never used this chip.

But assuming setting OK then this code will work as you want;

Loop:
pause 100
If button1=0 then 
X=X+1
goto Start
endif
goto Loop

start:
For A0 = 0 to X
Toggle Led
Pause 50000
next A0
if X=255 then X=254
goto Loop

end

Flashing will increment by one at every press upto 255.

Now, you add a second button and relative code for decrementing the variable X.

Al.