Is this the first time you've tried using this particular IC?
I've said it before, I'll say it again, start simple, work your way up...
How do you really know that the value is supposed to change? How do you really know that your interrupts are being handled the way you want them to be handled?
Replace the I2CWRITE commands with writes to the LCD, make sure you're logic is working, don't worry about what the chip does, just watch your numbers, see what they do first. Rewrite your program to write various values to the chip and the LCD and make sure the chip follows what you really want to do. Then integrate everything together. For all you know, there's something fundamentally wrong with the way you wrote the program.
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