Read this, http://www.picbasic.co.uk/forum/showthread.php?t=543 it tells how to set the config fuses from inside the program. As mister_e points out in post #5 of that thread, you could still have problems. If you do it will be time to talk to your instructor.

Now about the contrast pin. You said that you are using the same PIC as someone else. Do you mean PIC or project board?

What happens when you adjust the pot tied to the LCD's contrast pin?

It could be either one, LVP or contrast. If it is the same program as your friend , was your friend using the school's system.

Let us know.