MusixMatch is a song lyrics search website and it looks like it’s been tapped for use on Windows Phone 7. While you can use it as a stand-alone app and search for lyrics, the better use is as an addon to the Music HUB where you can play a song and then slide over to the addon and it will automatically launch to find the lyrics of the currently playing song (you can see tat at 2:30 of the video). It doesn’t scroll through the lyrics in real time but I hope that gets added cause I think that’s a great feature. Anyway, here it is in action and you can see that it loads artist info and background images as well.

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