RAM not reseting

[InitialDriveGTR]

Alright I am working with USB here, I'm using a PIC18F4550 with a 20MHz HS crystal, pll etc is all running fine considering I can talk to it via USB perfectly (for the most part). My issue is that I can not get the RAM to clear old variables from before when the mC was reset. here is the gist of the code I am using:

'Oscillator Settings:
DEFINE  OSC 48
DEFINE NO_CLRWDT 1

'low portc.6                         'Not entirely sure what I made this for again....keep it for now....
'Setup Registers:
CMCON = 7
ADCON1 = %00111011
TRISA = $0f

INCLUDE "DT_INTS-18.bas"            ; Base Interrupt System
INCLUDE "ReEnterPBP-18.bas"         ; Include if using PBP interrupts

'Includes:
INCLUDE     "modedefs.bas"
include     "defsvars.bas"

ASM
INT_LIST  macro                     							 ; IntSource,        Label,  Type, ResetFlag?
        INT_Handler    INT2_INT,  _resume_sleep,   PBP,  yes
        INT_Handler    INT1_INT,  _goto_sleep,   PBP,  yes
        INT_Handler    TMR1_INT,  _Sleep_loop_timer,   PBP,  yes
    endm
    INT_CREATE                      			 	   	  		 ; Creates the interrupt processor
ENDASM

'@   INT_DISABLE   INT2_INT         							 ; enable external (INT) interrupts
'@   INT_DISABLE   INT1_INT
@   INT_ENABLE   INT2_INT           							 ; enable external (INT) interrupts
@   INT_ENABLE   INT1_INT
T1CON = $31                										 ; Prescaler = 8, TMR1ON
@   INT_ENABLE  TMR1_INT
'@   INT_DISABLE  TMR1_INT
'TMR1L = $01
'TMR1H = $00

'Main Initializations
main:
    pause 5000
    lcdout $FE, 1, "System init"
    for index = 0 to 64             'Clear Output USB Buffer
        bufferout[index] = "0"      '*
    next                            '*
	for index = 0 to 64				'Clear Input USB Buffer
        bufferin[index] = "0"       '*
    next                            '*
    sys_sleep_flag = 0              'Reset flag
    sys_reset_flag = 0              'Reset flag
    unlocked = 0
    data_mode = 0
    counter = 0
    'high BL                         'Turn on Backlight
    pause 10
    'high V_Supply                   '*
    pause 10
    high EEE_Power                  '*
    high EEE_switch                 'Turn on computer
    pause 500                      '*
    low EEE_switch                  '*
    'gosub StartEngine              '*
'    gosub Initlcd                   'Initialize LCD
'    gosub relaytest                '*
    gosub temp_init                 'Initialize Temperature Sensors
    'gosub SETLCDBG                 '*
'    gosub starting_usb              '*
    goto usbstart                   'Initialize USB and run routines
  stop
end 

goto_sleep:                         'Sleep Interrupt
    sys_int_counter = 0             '*
    sys_sleep_flag = 1              '*
    sys_reset_flag = 0
@ INT_RETURN                        

resume_sleep:                       'Resume Interrupt
LCDOUT $FE, $1, "RESET 1"
if sys_reset_flag = 0 then
    if ENGINE_STAT = 0 then
	    sys_int_counter = 0             '*
	    sys_reset_flag = 1              '*
	    sys_sleep_flag = 0
@ INT_RETURN
	endif
endif

if sys_reset_flag = 1 then
'@   INT_ENABLE  TMR1_INT
    sys_sleep_flag = 0
    UCON.3 = 1                      '*
    LCDOUT $FE, $1, $fe, $c0, "RESET 2"
'@   INT_ENABLE  TMR1_INT
    pause 1000
@   reset
endif
@ INT_RETURN

Sleep_loop_timer:
    counter = counter + 1
    if ENGINE_STAT = 1 then
        high portb.7
	    sys_sleep_flag = 0
    ENDIF
    if ENGINE_STAT = 0 then
        low portb.7
    ENDIF
   
    if sys_sleep_flag = 1 then
        if ENGINE_STAT = 0 then
        low portb.7
@   INT_ENABLE   INT2_INT           							 ; enable external (INT) interrupts
@   INT_ENABLE   INT1_INT
		    bufferout(0) = $07
	    	bufferout(1) = $01
	    	if counter < 30 then
	        USBOut 1, bufferout, 64, sleep_loop_timer
	        endif
	        pause 100
            sys_int_counter = 1
            UCON.3 = 0
            'gosub entering_sleep
            low V_Supply
            low EEE_Power
            low BL
            sys_reset_flag = 0
            unlocked = 0
@   INT_DISABLE  TMR1_INT
	        LCDOUT $FE, $1, "Sleep"
@           sleep
            'goto waiting_loop
        endif
        if ENGINE_STAT = 1 then
        high portb.7
@   INT_DISABLE   INT2_INT           							 ; enable external (INT) interrupts
@   INT_DISABLE   INT1_INT
           	sys_sleep_flag = 0
			sys_reset_flag = 0
        endif
    endif
@ INT_RETURN

'include     "fontruntime.bas"
'Include     "lcdstring.bas"
'include     "LCDRoutines.bas"
include     "RelayControlRoutines.bas"
Include	    "ja_desc.bas"
include     "USB_Routines.bas"
include     "I2C_Routines.bas"
include     "ADC_Routines.bas"

Now what it's designed to do is receive a sleep interrupt that puts the controller to sleep after attempting to send one last packet of data to the computer. After 30 tries it forces the controller to sleep, bypassing the task of sending that last packet. So now that the uC is sleeping, I hit the resume interrupt once. This wakes the controller up and it's now waiting for either another reset interrupt or another sleep interrupt. If a second reset interrupt is received the controller should then reset the whole system and start the entire program over. The problem I have is that the uC is not reseting the variables even if I try to clear them at the beginning of the program. These variables not being cleared creaates a whole world of problems when my software goes to try and talk to the PIC again. Thanks

Also, props to Darrel Taylor for the interrupts work. It's amazing.