Here is my new code and a shot of my oscilloscope to show the output. I can see that I'm not getting an acknowledge, but I do not know why.

Code:
'****************************************************************
'*  Name    : i2c comms test with led driver                    *
'*  Author  : Cody Finden                                       *
'*  Version : 1.0                                               *
'*  Notes   : SOFTWARE FOR A 16F887 TO WRITE TO A LED DRIVER    *
'*          : OVER THE I2C PROTOCOL                             *
'****************************************************************


#config
 __CONFIG _CONFIG1, _HS_OSC & _WDT_ON & _PWRTE_ON & _MCLRE_OFF & _CPD_OFF & _BOR_ON & _IESO_ON & _FCMEN_ON & _LVP_OFF 
 __CONFIG _CONFIG2, _BOR40V & _WRT_OFF 
#endconfig


DEFINE OSC 20


ANSEL =     %00000000
ANSELH =    %00000000
TRISA =     %00000000
TRISB =     %00000000
TRISC =     %00000000
TRISD =     %00000000


SDA         VAR PORTD.3
SCL         VAR PORTD.2
led         var portc.5
addr        var byte


INIT:
PAUSE 400   'let hardware settle


'PCA9532 i2c address(7 bits + 1 bit for R/W) 
'Slave address is 1100(A2)(A1)(A0) + (R/W)
'In my setup A2 is pulled low, A1 pulled high, A0 pulled low
addr = %11000100  


MAIN:
    
'    I2CWRITE SDA,SCL,ADDR,[$12,$97,$80,$00,$40,$55,$FA,$00,$00]


    I2CWRITE SDA,SCL,ADDR,$06,[$00]  'turn off led 0-3
    led = 1     'blink led for feedback
    PAUSE 250
    
    I2CWRITE SDA,SCL,ADDR,$06,[$55]  'turn on led 0-3 
    led = 0
    pause 250


goto main
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