The examples page on Arduino.cc of LCD's show that the display needs to use digital pins 5, 4, 3 and 2 for data.
// initialize the library with the numbers of the interface pins// LiquidCrystal lcd(RS, E, D4, D5, D6, D7);LiquidCrystal lcd(12, 11, 5, 4, 3, 2); // put your pin numbers here
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