You are confused about decoupling caps. Any component that only has one terminal connected has no purpose. Look at the datasheet - page 1 shows the correct use of decoupling caps for this device, and it's connected to Vcc and GND (and it should be as close to the device as possible).
Since your code does not work, there are no parts that are not relevant. Post it all, and post it using the code tags so that it's readable.
-j