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You should get away from XC=Basic which wastes a lot of RAM with unoptized code instead of using external files. I bet the menu can be easily done in assembly by using some structured self coded subroutines instead of wasting a whole block of compiled code just to get some text on screen.

I agree, but it's a delicate balance between working code, time spent and having fun :)  I will replace more and more basic with assembly, but it's probably not going to happen in one big bang.