LCDOUT not working at 16mhz oscillator speed.

[richard]

That osccon looks pretty dodgy

[tumbleweed]

That osccon looks pretty dodgy

+1

You're enabling the PLL with an osc freq of 16MHz, so it's trying to run at 64MHz.
The max for that chip is 32MHz.

[CuriousOne]

Well it runs, and runs on 16mhz, I judge this by issuing HPWM 2,127,1000 statement, and measuring output frequency
If I leave OSCCON same and set DEFINE OSC to 32mhz, then it outputs 500hz.

[CuriousOne]

Changed: OSCCON=%01111011

Now LCD works on 16mhz, but still misbehaves sometimes - displayed characters get distorted, say you send text "TEST TEXT" and some letters will be replaced with garbage from user character area. I tried adding filtering capacitors/etc - no luck.

[mpgmike]

You don't want filtering caps on communications lines, you want the high-low-high transitions as crisp as possible. If anything, you may adjust the SLRCONx settings.

[CuriousOne]

LOL I'm not adding filtering caps to data lines. I'm adding them to power lines

[tumbleweed]

Looking at the library code, if the clock is set for > 16MHz (or 24MHz in some cases) it uses a longer internal delay before asserting some of the control pins.
Try this - lie to the compiler and tell it you're running faster than you really are:
DEFINE OSC 32 'set oscillator speed

Don't change your OSCCON setting... leave it so you're still actually running at 16MHz.