Tal Shrestha has Instalyrics (iTunes Link) for the iPhone and iPod Touch in the iTunes App Store for FREE ($1.99 value) for a limited time.

Instalyrics quickly and easily brings you lyrics for any of the songs on your iDevice. Using id3 tags to search thousands of lyrics websites, Instalyrics works for any tune in any language, at any time. This is the most complete song lyric resource in the App Store and now works together with your Mac.