Hello,
The previously posted replies have helped me learn a lot and correct a lot of mistakes regarding pin tolerance etc, however if you could educate me a little bit more on pull up resistors, it would be a great help.

I will use a 10-K-ohm pull up between the C8051F120(3.6 V) and JHD162A(5 V), to make the pins swing till +5V, i will have to define the pins as Open-Drain. For configuring the output state of a pin, it's PnMDOUT should be cleared and corresponding Port data bit set to 0 to tie it to the ground, or set to 1 to put it in high impedence.

The hiccups i am facing are:
1. How would a pin tied to GND or High Impedence affect it's output state when it is open - drain ?
2. Should a pull up resistor be between, Vcc and input, because if the pin is tied to the GND, how would it work ?
3. Will i have to connect all the 11 lines ( DB0 - DB7 & EN, R/W, RS) to the pull up resistor ?
4. Does the LCD ever give out any signals back to the MCU, or it justs takes all inputs ?

Thanking You for tolerating such questions.

Karan Verma