Maybe I am telling a foolishness, but I have seen in the code you are using the pins 11 and 12 as data and not for Enable and RS. I am wrong or is it??
(12,11,5,4,3,2,1) instead of (5,4,3,2,1,12,11)
You can use any available Arduino I/O pin to feed any of the LCD pins. The values that you use in the LiquidCrystal.lcd() statement have to match your particular circuit connections.
They have very cleverly made it difficult to find the explanation for this. Here is how:
Start here: http://arduino.cc/en/Tutorial/LiquidCrystal
Scroll down to the bottom
Use the Liquid Crystal Library link to get here: LiquidCrystal - Arduino Reference
Use the LiquidCrystal() link to get here: LiquidCrystal - Arduino Reference
And there it is under 'Syntax'
Of course a simple comment would go a long way as well:
//LiquidCrystal lcd(RS, E, D4, D5, D6, D7);
LiquidCrystal lcd(7, 8, 9, 10, 11, 12); // put your pin numbers here
Don