Some interesting images from an oscilloscope connected to pins 5 and 6 (where the LEDs are connected to) ...
LEDs turning on and off
This shows that the red LED turns on at point "A" and at the same time (roughly) the green LED turns off.
Then at point "B" the red LED turns off and the green LED turns on.
Note that the period is 809 ms which roughly agrees with the program. Since we asked for each LED to turn on for 400 ms and then off for 400 ms then we expect the period to be 800 ms (the period being the time when the waveform repeats). The slight discrepancy (1%) can probably be accounted for by the fact that the processor is not crystal-controlled, and thus would not run entirely at the expected speed, plus the delay executing the instructions themselves, as discussed below.
Also note the reported voltage on the LED being 2.88v. This sounds about right, as the two 1.5v batteries should deliver around 3v (in fact, measured to be 3.1v). Thus the processor is able to source 2.88v from a 3.1v supply rail.
Delay between LEDs
Zooming in, this image shows there is in fact a small delay between the LEDs switching. You would expect this because the program does this:
Thus there is a small time after the "low green" before the "high red" is executed.
Measured delay between LEDs
This screen shot uses "cursors" to measure the time delay between one LED turning off and the other one turning on. It shows around 288 microseconds delay.