It is actually fairly fancy lcd controller: unlike most epson controllers, this one has data bytes following some commands bytes. It allows virtual windowing and layering, so you can do fancy animation on this thing.
In terms of interfacing, the display datasheet didn't provide anything information regarding the touch panel so you are out of luck there.
The lcd controller itself is reasonably simple: it utilizes a 8080 interface (sel1/2 cleared). The commands are in Section 8. To start, you may want to just write to it, and use internal fonts. At a minimum, you need to implement reset, display on/off, and go to x/y commands. From there, you can implement memory write so you can load up your own fonts / images.
Thank you for all your replies, but dhenry, how shall I connect the ribbon cable up to the arduino board, I've only had my board a week and been given lots of stuff to play with by a friend, so I am fairly new to this. I doubt the arduino will be able to produce a high enough clock frequency and a high enough current so are there any shields that have my connection as well as the right amps?