tekart,

With the 24LC08, the address needs to be a BYTE.
There are also 4 "blocks" of 256 bytes that can be selected in the "control" byte.
And the address should increment (STEP) by 2 for word sized data.

I ran this in Proteus ... seems to work.
Code:
Temp     VAR BYTE
Mode     VAR WORD

for temp = 0 to 38 STEP 2
    Mode = temp
    i2cwrite ee_dat,ee_clk,$A0,Temp,[Mode]   ' write
    pause 400                                ' hold for display
    i2cread ee_dat,ee_clk,$A0,temp,[Mode]    ' read it back
    lcdout lcdcmd,lcdline2 ,#temp," ",#Mode  ' display it
    pulsout piezo,10                         ' diagnostic "tic" sound
next temp