lcd.setCursor(col, row) does what it sounds like. Sets the cursor position on the lcd.
The next character printed will be placed at that location.
Your code never prints any characters which is why you never see anything.
It reads a character from the serial port then uses the numeric code of that character to
set the cursor position to that column on row zero.
Have quick read of the LiquidCrystal functions to get a better feel of the
routines available to see what will do what you want.
http://arduino.cc/en/Reference/LiquidCrystal--- bill