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The Hoarder (SAK) board should give you some idea about how to interface the compact flash card and to program a file system (I am not sure whether it's FAT or FAT16). The MCU used in this project is PIC16F877 not the MCS51 ... http://vadim.www.media.mit.edu/Hoarder/Hoarder.htm
FAT16/32 File System Interface
This FAT16/32 interface allows you to detect and mount FAT16/32 partitions, browse directories and files, and read file data. The interface is design to operate with the avrlib IDE/ATA driver. Reading FAT efficiently requires at least 512+ bytes of RAM so this interface may not be suitable for processors with less than 1K of RAM. This interface will properly follow a file's cluster chain so files need not be defragmented.
IDE/ATA Interface Driver (for IDE/ATA hard disks)
This library provides an interface from AVR processors to IDE/ATA hard disks. The library supports automatic drive identification and sector-level reading and writing. Some minimal address decoding hardware is required to use this interface. A schematic of the interface is coming. Future revisions may include a direct hardware-less option.