What is wrong with code?

By the way, your code should have been organized like this:

Print("press esc 5 times to quit!")
eschits=5
While(eschits)
	If KeyHit(1)
		eschits=eschits-1
		Print "Esc Hit"
	EndIf
Wend
End

(You were missing an EndIf, and the 'If eschits=0' line was unnecessary)

But I believe the reason it doesn't work, is because KeyHit and KeyDown are intended to be used in a 'graphical' app (meaning using the Graphics command).

So either use the Graphics command, or you will have to use something like Input, GetKey, or WaitKey.