Eric,
Could you please try your LCD3 with the 10-31-12 Angstrom release?
http://dominion.thruhere.net/koen/angstrom/beaglebone/Angstrom-Cloud9-IDE-GNOME-eglibc-ipk-v2012.05-beaglebone-2012.10.31.img.xz
Instructions of how to write image file to SD card can be viewed at
http://circuitco.com/support/index.php?title=BeagleBone#Image_Files
BeagleBone LCD3 Cape revision A2 is only supported by 10-31-12 release onward. You can also view more technical information and supporting documentations on BeagleBoardToys wiki for LCD3 Cape
http://beagleboardtoys.com/wiki/index.php?title=BeagleBone_LCD3
-Hieu