Dan has already identified that the problem is due to the semicolon in

#define reset 0xe1;

#defines are used by the 'C' Preprocessor; effectively, this takes your source file, processes it, and then passes the result to the Compiler.
With the above #define, whenever the preprocessor sees "reset" it replaces it with "0xe1;" so your line

test(reset);

becomes

test(0xe1;);

and the error is now obvious!

Now here is Andy's Handy Hint for Debugging Preprocessor Problems:
Most compilers provide a facility to save the Preprocessor output to a file; with Keil C51, it's the PREPRINT command-line option.
Conventionally, this creates a file with a .i extension.

If you have unexplained errors, or suspect that your macros might not be quite working properly, I recommend that you should check this preprocessor listing!