The first step to set up your home microcontroller lab is to install the compiler/assembler software, you can download keil here. Keil microvision includes a simulator along with ANSI C compiler and macro assembler, you can simulate your program and debug errors before downloading you code to the 8051.
Next you install the ISP software, I currently use the ISP software designed by Asim. The ISP circuit with software can be found here, there are many other ISP circuits available in the internet.The ISP programmer is a simple circuit with one buffer IC and some resistors which you can build in a general purpose circuit board, the ISP circuit is used to download the hex file of your program to the 8051 microcontroller.
Now you are ready to connect all the elements together, one end of ISP circuit is connected to PC through parallel port, the other end to the ISP port of your development board. There are many tutorials on the internet for FREE to learn how to write and compile a program in keil, simulating a program, creating hex files etc. I have included some screenshots below to demonstrate beginners to create, compile and download the hex file to the microcontroller.
After you have written a simple program like flashing a LED, compiled and created a hex file, switch on the power for development board, load the hex file to the ISP software, and click on write and now you can see the LED flashing in your development board.
Screenshots illustrating how to use keil and ISP software.