Nevermind, got it to work, all I changed was to set up pin directions at the beginning.
#include "msp430g2553.h"
#include
void transfer(char s) {
while (!(IFG2 & UCB0TXIFG));
UCB0TXBUF = s;
}
void main(void) {
WDTCTL = WDTPW + WDTHOLD; // Stop watchdog timer
P1DIR |= BIT0;
P1OUT |= BIT0;
P1SEL = BIT1 + BIT2 + BIT4 + BIT5 + BIT6 + BIT7;
P1SEL2 = BIT1 + BIT2 + BIT4 + BIT5 + BIT6 + BIT7;
UCA0CTL1 = UCSWRST; // **Put state machine in reset**
UCA0CTL0 |= UCCKPL + UCMSB + UCSYNC; // 3-pin, 8-bit SPI slave
UCA0CTL1 &= ~UCSWR