Tried out Amarok 2 over the weekend on my Linux mint "Elyssa" box. Install instructions are fairly straightforward. The UI is quite minimalist. But fact is that it just works. Just point it to your music directory, add the lyrics applet (Right Click in the center panel of the Amarok window)
Then select Lyrics Applet:

And Voila:


Of course the lyrics will be displayed provided you are connected and online, duh :)

Great work by the Amarok team!