I think I know the problem. I still have Arduino 1.0.1 and 1.0.2 and even when the code is fixed properly, it doesn't work due to:
In file included from sketch_jan16a.cpp:2:
D:\arduino-1.0.1\libraries\LiquidCrystal/LiquidCrystal.h:82: error: conflicting return type specified for 'virtual void LiquidCrystal::write(uint8_t)'
D:\arduino-1.0.1\hardware\arduino\cores\arduino/Print.h:48: error: overriding 'virtual size_t Print::write(uint8_t)'
Only in 1.0.3 does it compile correctly and run. Maybe that is it.
@i_luv_arduino:
What software version do you have, 1.0.1, 1.0.2 or 1.0.3. Because it works with 1.0.3 and not with the other two.