Of course premaking the lyrics would be doable. But why not provide a method to do it while in the car? For those long trips or whatever.. Basically I think it'd be nice to have the following methods to get your MP3 files tagged with timestamped lyrics:

1. A converter/importer for existing formats. I believe there are two formats in which people have already done lyric files. I remember that one of them is .LRC, I can't remember the other. The number of lyrics done isn't THAT impressive, but here are some sites with some tagged lyrics.
http://coollrc.cjb.net/
http://filebox.vt.edu/a/aekamal/Lyrics/Tagged%20Lyrics/
http://f5lyrics.port5.com/

2. A method to do what you said you did... Get the lyrics as text files and sit at home pressing the spacebar to insert timecodes. Who says it's going to be fun? The thing is once it's done, it's done, and you could share the files with everyone.

3. The aforementioned procedure where you have the files uploaded as simple TXT files and can generate the timecodes while you're in the car.

I think this would be really flexible. Hell, if I'm in the car for eight hours listening to music, how hard is it to be tapping a button to do the timestamps? If they're not perfect, they could be edited later on.

As for my lyrics project, I just answered this question in another thread yesterday, but... Right now it's limited by the lack of a FAST graphics API that can handle the scrolling. I have to skip four or five pixels in order to get things to scroll fast enough. I am going to try to change the process' scheduling mode to realtime to see if that helps out, but I haven't had time to do that yet. Right now it's just reading text out of a flat file in a format similar to the LRC format, eventually I would want it to read the timecodes out of the ID3 tag. I haven't decided if I'm going to use the ID3v2 timecode tags or just have the text stored in a comment field, a reliable ID3v2 library has so far eluded me.