Wow, I'm surprised to see so many people (13 as of this writing) voting for seperate .lrc file!

Seems like such a headache to have twice as many files on your empeg. Not to mention trying to match them up with the right FID. Better not delete and re-add your mp3s or the fids will change and then the lyrics need to be re-matched.

Putting them in the v2 tag is a one-time thing... no extra files, no worrying about which .lrc goes with which .mp3.