for those others who are using TWI on an AVR to interface with a MO LCD:
i just quickly threw this together, and tested it successfully. You may need to change TWBR and TWSR, as these two registers set the data rate of the TWI (i2c) interface. Spelling in comments not guaranteed :-)

This example ...

ahh! i was reading the example of how you guys include the W/R bit in the slave adress, and i was using the example address which is 8A. gerrr. my fault.

how does this look? It looks like I have successful communication now. FE, 52 SHOULD clear the display correct?

I also realize theres no stop ...

I just did a manual reset of the device, so if the default address is in fact 0x45 (or 0X8A when talking about all 8 bits) as the data sheet says, I should be seeing a successful ACK on the line after its addressed, correct? After reseting the LCD I still did not get a successful ACK.

I try ...

Having problems trying to use an atmega88 to communicate with my Lk204-25.

I have cleared the jumpers off the 232 pads on the back LCD and moved 2 over to the i2c pads. This is a read of the i2c bus. the LCD is unresponsive. It should be ACKing if i read the LCD documentation correctly, which it ...