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 !!
2) many LCD modules with LED backlight rely on you to feed the LED through a resistor, check datasheet.
try connection just the lcd - not the backlight - and see what happens

3) that can very well be normal

Erik