Lady Ada has a great tutorial on how to connect LCDs to the Arduino. For those of you new to LCD graphical interface to Arduino, this guide could be a great place to start.
Lady Ada goes into details of how to use character LCDs. Of course, don’t forget that you can also create simple animations using character LCDs. They are also easiest to start on. Also see my hack on a graphical LCD hacked with custom Tetris game and wireles