Hi Awilliams,
This is really strange because when SCL is low, the I2C bus is busy and you are not supposed to be able to send data through it.
Your I2C routine is verifying the BUSY bit?
The pull ups are correct and ok?
You could take a look on the examples I wrote for master/slave I2C communication using the QG8:
www.sctec.com.br/hcs08 take a look at examples 13.6 and 13.7.
Best regards,