HyperLyrics is a tool that downloads lyrics from the internet and display them on your computer in an easy and intuitive way. It saves the lyrics on your computer so it only has to download them once. HyperLyrics also supports karaoke features: it can display the current text line synchronously. It also can show karaoke lyrics in the MilkDrop2 visualization. Now much faster & more stable, and support for Winamp, WMP & YouTube (IE).
This runs as an external program (the installer doesn't make this too clear) and it works in conjunction with Winamp. However it seems to be somewhat flawed with most tracks failing to get any lyrics (when other systems work) and the example didn't work correctly either. It seems to be a good idea but there does seem to be better alternatives available which better integrate with Winamp (ie skinned embedded window to match with the Winamp UI - the external window is rather cumbersome) and also find more results consistently (only managed 1 valid result out of 30 common songs tried).