cattledog:
I think you have your high and low bytes switched around when you read an recombine them.
Yeah you are right! I thought MSB was first. However, my code is still not working. I think something with my I2C_read function is up. I printed the two bytes I received and they turned out to be always the same...
Initialising Gyro
Byte #1: 75
Byte #2: 75
Byte #1: 203
Byte #2: 203
Byte #1: 183
Byte #2: 183
Byte #1: 193
Byte #2: 193
Byte #1: 192
Byte #2: 192