1.First of all you should use one of 2 following options for #include directive
#include "path-spec"
#include <path-spec>
, not #include path-spec, as you did
2.To configuire 7th bit of P1 general I/O port to work in push-pull mode you should set
P1MDOUT = 0x80;
, not
P1MDOUT = 0x40;