Table 2-1 of the data sheet Says this about pin A2
Non-Configurable Chip Select.
This pin must be hard wired to
logical 1 state (VCC). Device
will not operate with this pin
left floating or held to logical 0
(VSS)
If you are still using the schematic from MeLabs then...

The other thing I see in the data sheet is the last bit of the control byte sets Read or Write.
0 = READ
1 = WRITE
Code:
contR    CON     %10100000  
contW    CON     %10100001

I2CWRITE PORTB.1,PORTB.4,contW,addr,[20]
PAUSE 10     'Is that long enough?
I2CREAD PORTB.1,PORTB.4,contR,addr,[B1]
And you may have to add this but try the above stuff first
DEFINE I2C_SLOW 1

But all the above might be a bunch of hooey. I have not used this chip...