fm:
Where did you place the Library? Beacause it is not finding it.
Okay, I figured out what was going on now, when I unzipped it I had an extra folder as in \LiquidCrystal_V1.2.1\LiquidCrystal. I copied all the files to \LiquidCrystal_V1.2.1 and deleted the LiquidCrystal folder. Then I rename the \LiquidCrystal_V1.2.1 to just LiquidCrystal and now it compiles okay. Of course the LCD still does not work for some reason. I am not sure why, I used the exact circuit from the web page.