I2C plaguing me on MSP430

I'm trying to get my MSP430g2553 to talk to a sensor via I2C. If anyone can spot-check the hardware in the picture below and see if there's a problem there, I'd be grateful. The resistors are connected to the red rail. Right now they're 2.2k, but I've also tried 8k and 10k.

Picture:  http://imgur.com/OTwArXa

The slave device is a PMU-6050 if you're interested.

Code is included.

#include <msp430g2553.h>
//#include "MPU6050.h"
#define MPU6050_RA_WHO_AM_I         0x75
#define MPU6050_DEFAULT_ADDRESS     0xD0

void init_I2C(void);
int i2c_notready(void);
char Receive(char);
void Transmit(char, char);


  // Pin 1.6 is SCL
  // Pin 1.7 is SDA
  // Slave address for MPU6050 is 0x68

int main(void)

{

         volatile char who_am_i;
         char gotit=0;

         WDTCTL = WDTPW + WDTHOLD;                 // Stop WDT
         BCSCTL1 = CALBC1_1MHZ;                    // Set DCO to 1Mhz
         DCOCTL = CALDCO_1MHZ;
         P1SEL |= BIT6 + BIT7;       // Assign I2C pins to USCI_B0
         P1SEL2 |= BIT6 + BIT7;       // Assign I2C pins to USCI_B0
 
         init_I2C();    // initialize i2c
         __delay_cycles(10000);
       
         while ( i2c_notready() );       // wait for bus to be free
         __delay_cycles(10000);



        
         who_am_i = Receive(MPU6050_RA_WHO_AM_I);
         if (who_am_i != 0x00)
           gotit=who_am_i;

         
   while(1){       }
}

void init_I2C(void) {
          UCB0CTL1 |= UCSWRST;                      // Enable SW reset
          UCB0CTL0 = UCMST + UCMODE_3 + UCSYNC;     // I2C Master, synchronous mode
          UCB0CTL1 = UCSSEL_2 + UCSWRST;            // Use SMCLK, keep SW reset
          UCB0BR0 = 12;                             // fSCL = 1Mhz/12 = ~100kHz
          UCB0BR1 = 0;
          UCB0I2CSA = MPU6050_DEFAULT_ADDRESS;
          UCB0CTL1 &= ~UCSWRST;                     // **Initialize USCI state machine**
          IE2 |= UCB0RXIE + UCB0TXIE;    // Enable RX and TX interrupt
}


int i2c_notready(){
        if(UCB0STAT & UCBBUSY) return 1;
        else return 0;
}


char Receive(char registerAddr){
        char receivedByte;
        while (UCB0CTL1 & UCTXSTP);             // Ensure stop condition got sent (UCTXSTP auto clears after STOP is sent)
        UCB0CTL1 |= UCTR + UCTXSTT;             // I2C start condition with UCTR flag for transmit
        while((IFG2 & UCB0TXIFG) == 0);     //UCB0TXIFG is set immidiately (UCB0TXIFG is set to indicate TXBUF is ready for more data) 
        UCB0TXBUF = registerAddr;           //write registerAddr in TX buffer
        __delay_cycles(1000);
        
/***********************       
        if (UCB0STAT & UCNACKIFG)
        {
          UCB0CTL1 |= UCTR + UCTXSTT;             // I2C start condition with UCTR flag for transmit
          while((IFG2 & UCB0TXIFG) == 0);
          UCB0TXBUF = registerAddr;           //write registerAddr in TX buffer
          __delay_cycles(1000);
        }
************/
        
        
        while((IFG2 & UCB0TXIFG) == 0);     // STUCK HERE wait until TX buffer is empty and transmitted
        UCB0CTL1 &= ~UCTR;                // Clear I2C TX flag for receive
        UCB0CTL1 |= UCTXSTT + UCTXNACK;    // I2C start condition with NACK for single byte reading
        while (UCB0CTL1 & UCTXSTT);             // Start condition sent? RXBuffer full?
        receivedByte = UCB0RXBUF;
        UCB0CTL1 |= UCTXSTP;                    // I2C stop condition
        return receivedByte;
}

void Transmit(char registerAddr, char data){
    while (UCB0CTL1 & UCTXSTP);             // Ensure stop condition got sent
    UCB0CTL1 |= UCTR + UCTXSTT;             // I2C start condition with UCTR flag for transmit
    while((IFG2 & UCB0TXIFG) == 0);         //UCB0TXIFG is set immidiately
    UCB0TXBUF = registerAddr;               //write registerAddr in TX buffer
    while((IFG2 & UCB0TXIFG) == 0);         // wait until TX buffer is empty and transmitted
    UCB0TXBUF = data;                       //Write data in register
    while((IFG2 & UCB0TXIFG) == 0);         // wait until TX buffer is empty and transmitted
    UCB0CTL1 |= UCTXSTP;                    // I2C stop condition
    IFG2 &= ~UCB0TXIFG;                     // Clear TX interrupt flag
}

And the code keeps getting snagged at the line indicated below. Pretty sure the slave isn't sending back an acknowledge signal: