If you saw something on the display we are getting close. When you get a chance post the code where you saw "ell o Hello "

Here is an initialization for a 5v display data sheet simular to yours.

Code:
INITIALIZE: (5V)
MOV I2C_CONTROL,#00H ;WRITE COMMAND
MOV I2C_DATA,#38H ;Function Set
LCALL WRITE_CODE
MOV I2C_CONTROL,#00H ;WRITE COMMAND
MOV I2C_DATA,#39H ;Function Set
LCALL WRITE_CODE
MOV I2C_DATA,#14H ;Internal OSC frequency
LCALL WRITE_CODE
MOV I2C_DATA,#79H ;Contrast set
LCALL WRITE_CODE
MOV I2C_DATA,#50H ;Power/ICON control/Contrast set
LCALL WRITE_CODE
MOV I2C_DATA,#6CH ;Follower control
LCALL WRITE_CODE
MOV I2C_DATA,#0CH ;Display ON/OFF
LCALL WRITE_CODE
MOV I2C_DATA,#01H ;Clear Display
LCALL WRITE_CODE
Based on this information try to change your code to
Code:
ST7036Init:


 


I2CWRITE PORTC.1, PORTC.0,$78,[$00,$38]
PAUSE 10 
I2CWRITE PORTC.1, PORTC.0,$78,[$00, $39,$14,$79,$50,$6C,$0C,$01,$06] ' 



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