The 5110 LCD is a graphical 84×48 pixels monochrome display.
It features a modest Backlight illumination, that can be blue or white. It only needs 3V to run, and it is 5V signal tolerant (not the backlight, so be careful, the leds need 3V max!) Its cost is also low, making it an excellent choice for DIY projects.

To connect it to an Atmega8, you can use the following diagram:

The code, written as a C++ class, allows you to output text or draw pixels, position anywhere on the screen, or even draw images. The initialization function is highly flexible, allowing you to specify the pins allocated for the LCD, on the fly:

// define the 5 LCD Data pins: SCE, RST, DC, DATA, CLK
lcd.lcd_init(&PORTB, PB0, &PORTB, PB1, &PORTB, PB2, &PORTB, PB3, &PORTB, PB4);
    
while (1) {
	// image demo
	lcd.printPictureOnLCD(introScreen);
	_delay_ms(2000);
	lcd.lcd_clear();
	
	// goto and char demo
	for (int i=0;i<14;i++)
		for (int j=0;j<6;j++) {
			lcd.lcd_goto_xy(i,j);
			lcd.lcd_chr('0' + (i + j) % 10);
			_delay_ms(10);
		}
	_delay_ms(2000);
	lcd.lcd_clear();
	
	// formatted string demo
	for (int i=10;i>0;i--) {
		lcd.lcd_goto_xy(0,1);
		lcd.lcd_string_format("   00.00.%02d   \n  pocketmagic \n     .net     ", i);
		_delay_ms(200);
	}
	_delay_ms(2000);
	lcd.lcd_clear();
	
	// draw a chart
	for (int i=0;i<84;i++) {
		int f = (i * i) % 48;
		lcd.drawPixel(i,0, 1);
		lcd.drawPixel(i, f, 1);
	}
	_delay_ms(2000);
	lcd.lcd_clear();
}	

Here is the result of the code above:

A few pictures:

The image data with the two cats, available in introscreen.h, has been generated out of a monochrome, 84x48 pixels BMP, using the LCDAssistant software, by Radoslaw Kwiecien.

The code is available as open source, licensed under GPL v2:
lcd_5110