Ok, so I decided to manually initialize the LCD.
First I connected LEDs (with a 220ohm resistor inline with it) to ever data and control line that the LCD uses, removed the LCD and entered the bootstrap. Then I manuall went through the initialization sequence, which for your info is the following:
W P3 80 ; 80 turns on bit7 (EN)
W P1 38 ; turns on bit 3,4,5
W P3 00 ; turn off EN, LCD should read P1

W P3 80
W P1 0E ; turn on bit 1,2,3
W P3 00

W P3 80
W P1 06 ; turn on bit 1,2
W P3 00

(W writes to port, P* is the port number, then the value)
I got this from the LCD tutorial.

well, I watched the LEDs as I manually wrote out each line and sent it. It did it perfectly, lighting up the correct LEDs every time.
I figured, this way I could avoid any timing issues since manually typing its a lot slower than how the chip does it.

So I pulled out the LEDs and plugged in the LCD(which, btw, i jsut tested on somethign else and is perfectly working)
And no matter if the resistors are there or not, or what code I send to it, it always looks like this:
####################
####################
( # being solid blocks of pixels)

Oh, one last thing, I'm still unsure of the way my crystal is hooked up (check out 2nd reply for more info)

Again, any informationm anyone could give me would be awesome. Thanks!

Phil