Panos Kenterlis wrote:
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The LCD is forced to reset with an I/O pin. i just do that at the start of the initialization of the microcontroller. The rest of the time i just have it pulled up.

This can cause your problem.
The 8051 can only drive weak high level. So noise can cause a short low pulse on the line and the display resets.
So you should use drivers (e.g. 74HC245 for data, 74HC240 for control lines) on the cable to the display.


Peter