Just want to give you all some feedback.
mem has provided me with a updated KS0108 Library that after some tweeking works with the Sanguino bootloader and a ATMega644.
I am sure that mem will give us more information on his progress when he feels finished with his work on the KS0108 library and the understandig of the ATmega644 technical hardware functionallity combined with Sanguino bootloader.