If anyone came across with same problem, this guide http://www.geocities.jp/arduino_diecimila/bootloader/index_en.html solves it.
And if you got Seeeduino from Seeedstudio like me: bitbang pins X3 of Diecimila called UART on Seeeduino.
Seeeduino's bitbang pins are labled according to config file of AVRDUDE. If you refer to the guide, the mapping is like this:

seeedstudio uart          arduino x3
   CTS         -->           1
   DSR        -->           2
   DCD        -->           3
   RI           -->           4

Hi there!
I've bought seeeduino couple weeks ago and absolutely loved its innovations and slick design, but it worked for 7 days only!!! Now when I try to upload a sketch it returns error:

avrdude: stk500_paged_write(): (a) protocol error, expect=0x14, resp=0x80
avrdude: failed to write flash memory, rc=-4
avrdude: stk500_recv(): programmer is not responding

TX and RX LEDs blinking for some time and then stop.
Seeeduino was connected to very simple board with 16 LEDs and two shift registers. All LEDs had 1k resistors and were powered from 5v pin. Seeeduino had a 9v battery supply, and was switched to 5v mode. It worked in such configuration for about a day and then stopped. I'm sure it isn't my fault.

Would you please tell me what that error message means? And how to fix it if possible?
Thanx!

Wow! mem, Thank you mate!
I've tried to change ks0108.cpp as you described here: http://www.arduino.cc/cgi-bin/yabb2/YaBB.pl?num=1210427907/30
tweaked delay. Set it to 50

#define DELAY_EN_ON  50
#define DELAY_EN_OFF 50

And it worked! There still some pixels missing, but any way you can see a clear picture.
You can download a modified ks0108.cpp file from here http://www.dim-len.com/misc/ks0108.cpp



So this means I've got a slow display :-? huh?
What models would you recommend for best performance?

Thank you mem for pointing me in a right direction, if I get it working I will let you know.
Thanks!

Hi,
I've got KS0108 GLCD connected to the Arduino (Seeeduino - 100% Arduino Diecimila compatible) wired as a common Pinout B panel according to this www.arduino.cc/playground/Code/GLCDks0108 It supposed to have two lines moving, one from top to the bottom, second one from left to right. LCD is 100% properly connected, but picture is garbled. Any suggestions how to fix it?
Please check picture below along with links to its manual and video.

GLCD model: LM12864M

GLCD manual here: http://www.topwaydisplay.com/Pub/Manual/LM12864MBC-Manual-Rev0.1.pdf

Video here:

Thank you in advance!!!

Yeah! Sorry people! When I was posting this topic I thought I'm in Troubleshooting section. But then realized that I'm not!
   Anyone who had similar problem or anyone who know the solution please follow this link http://www.arduino.cc/cgi-bin/yabb2/YaBB.pl?num=1229827383

GLCD manual here: http://www.topwaydisplay.com/Pub/Manual/LM12864MBC-Manual-Rev0.1.pdf

Video here:

Hi,
I've got KS0108 GLCD connected to the Arduino (Seeeduino - 100% Arduino Diecimila compatible) wired as a common Pinout B panel according to this arduino.cc/playground/Code/GLCDks0108 It supposed to have two lines moving, one from top to the bottom, second one from left to right. LCD is 100% properly connected, but picture is garbled. Any suggestions how to fix it?

GLCD model: LM12864M

Please see picture below along with links to its manual and video.

Thank you in advance!!!