Just notice the address missing on the Read function.
Moved the Fail label after Write to test this part first. This will let you know if the Write address was recognized so the Pause 10 is not needed.


Code:
Main:
High Led : Pause 500: Low Led : PAUSE 500
	Addr=$36
	I2CWRITE SDA,SCL,ADDR,LOC, Fail  ' Test here first
	Addr=$37 ': pause 10                    ' OR If SDA=1 then main 
	I2CREAD SDA,SCL,ADDR,loc,[VALUE] ',Fail
	PAUSE 25
	DEBUG  HEX Value,13,10
	PAUSE 250
	DEBUG "Done....",13,10
WHILE 1 : WEND
Goto Main

Fail:
	toggle portc.2
goto main