iLyric searches the internet and downloads the lyrics for the music listed in your iTunes library. iLyric, allows you to copy you lyrics over to your iPod in the new Notes format supported by firmware release 2.0. Support for Vcards is in progrees for older iPods.

Upon startup iLyric reads in your iTunes library and displays the Artist and song names. Double-clicking on a row causes iLyric to search for that song on the internet. If the song is found, it is displayed in the text view on the right. A check mark is also placed to the left of the Artist name in the first column if the song has been downloaded to disk. Single-click a song that has a check mark and it will be read from disk and displayed. You can also view the download lyrics in a web browser. Use the finder and double-click on any downloaded lyric (~/Music/Lyrics/Work/) and it will be loaded into your web browser. iLyric requires Mac OS X 10.2 or later.

Note: in order for the lyrics to be copied over to your iPod, your iPod must be configured to appear as a firewire drive.

More info and download link here. Note: this link says iLyric 0.1, but you’ll get iLyric 0.3 when you download.