Erik...i am sorry, but i didn't exactly understand your reply...

1. I dont have the data sheet for my power supply(i have no model no. or anything written on it)....but i dont think it is going in any current or thermal limit as you suggested.

2.What do you exactly mean i am connecting wrong in this case...i am connecting the VCC pin of the lcd diretly to the power supply !!! There is no led here which can be connected opposite or any other such thing.

3. I did try connecting the VCC pin of the LCD to the power supply through a register, and i do get the appropriate voltage at the power supply, but the resister takes the whole voltage drop of 5V across it, i.e the voltage at the VCC pin is nearly zero volts !!

So my ckt is not working !!