initializing the LCD on the Terasic Digital Touch Panel using VHDL state machine

I'm interfacing the Terasic Digital Touch Panel with the DE2 board and I need to initialize the LCD using a state machine in VHDL. I am new to all of this and I'm not sure where to start. I understand how the address is contained in SDA from A0-A5 and the data to write to the address is from D0-D7. Would the state be considered the entire 16-bit SDA? In the frame format and timing diagram for the LCD touch panel, it shows each bit of the SDA corresponding to a clock count. I don't understand how each bit of the SDA is a state. Thanks for any clarification! :confused: