A lot depends on what type of LCD are you using? Are you using a parallel one which requires either 4 or 8 signal pins plus some other IOs, or are you using a serial LCD. In that case you typically need 1 signal pin outputting data at some specific baud rate. With a serial LCD it is easiest to hookup to the one hardware serial port on the Atmega32. If that one is taken for other things than you need to generate the appropriate serial data yourself... Or you could use libraries like webbotlib to do this for you.
But again this all depends on what LCD you are using.