I just create it directly in the xml database under a new sub.
EG.
</item>
<item>
<parameter>C:\Brw32\Music\Linkin Park\Meteora\07 - Faint.mp3</parameter>
<display>Faint</display>
<type>track</type>
<information>
<tracknumber>7</tracknumber>
<trackname>Faint</trackname>
<trackfilename>07 - Faint.mp3</trackfilename>
<artist>Linkin Park</artist>
<lyrics>Past the lyrics here '<---- New Sub'
</information>
</item>
I have tested it in xlobby with a few songs and it works but i need the scroll feature.
Admittedly i have done the test using cut and paste with only 10 songs but i am pretty sure i can whip something up to do it automatically.
I currently use winlyrics
http://www.winlyrics.com which works quite well and can display embedded lyrics and txt files. I use evillyrics to get the lyrics in text format and JR Media Center with king sparta's plugin to get the lyrics emedded in the tag.