Hi Ofir, hope you received my source file. Here's what you're doing wrong:
1: when you start your initialization, FIRST you write to the LCD, THEN you check if it's busy. Should be the other way around.
2: No need to write things twice. The weird E pulse your 10ms delay routine starts with: don't do that.
3: No need for a 10ms delay routine anyway. No need for NOPs aither.
4: as I said, the 10ms routine can go, but just to make you notice: the second time you think you're checking the busy flag, you aren't. You didn't read the LCD a second time.
5: your stringwrite is not writing data, it is writing to the control register; you're using the command routine (where RS is LOW).

Also check the tutorial on this site, it's good.

Hans