peter Version 3.7 will make this syncing stuff way easier. Until then you need to make do with what is available in 3.6.
I am Absolutely loving this app, i have been mainly concentrating on giving feedback on looping feature as i have been flat out lately but will start concentrating on Lyrics Only as it is something i really want to use as well, it has great usefulness for musicians that don't need audio backing but need text only, especially on iPhones as everyone has one with them at all times, so whenever a need occurs they have quick access to lyrics.