Exactly. Put one close to the PIC, one close to the output of the 7805, and another close to the display.What do you mean by "bypassed" - connect the 0.1uF caps between the +V and 0V lines of the PIC and the display?
If you are using the 7805 then on the input of that. If just 3AAs, then where the 4.5V power wires enter the board.Where does the bigger cap go?
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