I assume by "reset" you mean the RS signal - Register Select?
Anyway, I couldn't get this to work, the display got all garbled. Even with the clearing of the shift register before each write, and the Enable bit at last position (QH). Admittingly I had the RS as the first bit in the beginning, then modifying it so that I could write the last bit (that is QA - first position) as a zero, but it was still no go. Oh, and I dicovered my idea of several enable-diode-AND-"gates" was not really worth mentioning..
What value did you use for the resistor? I used 6.8 k. Also could you post the relevant bits (no pun:p) of code? Particularly the parts to write to the shiftregister?
Btw I also see from the link you gave, he had a better way of using 3 wires with a shiftregister. One that used all 8 bits for data to the LCD. Would make for a little faster display. Connect LCD to Atmega using 3 wires - Do It Easy With ScienceProg.
But, of course, two wires would be the coolest. If only I could get it to work... (and I -was- happy with using three in 4-bit mode :P)