Thanks David for your kind reply.

1. I have used the 11.0592 MHz crystal, so i think there's not much of the timing problem, since to LCD timing matters only in ns, but i DID try using delays far more than that.

2. I am doing exactly the same, but to no avail.
3. I didnt get the meaning of double data read. Can you please clarify it a little bit how to do that?

4. Really thanks for this one. I didnt know there were drivers for KS0108. I downloaded from http://en.radzio.dxp.pl/ks0108/. But I am puzzled how to specify the pins for rs, rw, en, cs1/2 etc... I was trying to find something like: sbit rs = P2^0;
sbit rw = P2^1;
sbit en = P2^2; etc. The low level instructions file (KS0108-8051.c) says #define KS0108_RS (1 << 0)
#define KS0108_RW (1 << 1)... I didn't understand its meaning, while i changed #define KS0108_DATA_PORT P3 to my needs...

-Regards
Munish