BARRICADE  is not working properly not trying to find lyrics . No Good!  
(Version 3.1.10)

KAARLOWS  It simply doesn't work. It doesn't search for lyrics on iTunes and only show the ones I already have in the music file.

PearLyrics still is the one, although no longer developed.  
(Version 3.1.10)

FREDDUCKER  It seems to work fine most of the time but it's got a personality of its own... sometimes it will freeze for no reason and be quite hard to wake up! I usually launch or delaunch the dashboard or click repeatedly on the little (i) info button to make it work again but it's not supposed to slow down or stop working I guess. Maybe because it doesn't like the song? Or RAM shortage (I have 512)? Or connection problem? Or I skipped songs too fast? Still the best way to get lyrics and artworks I've seen so far, just needs to run a little smoother.  
(Version 3.1.10)

JOSHP  Download link is not working at the time of this comment. Will try again later.  
(Version 3.1.10)

NLC  nix previous post. It's still not loading the majority of songs... at one point it froze, and after restarting it, it won't even respond to iTunes... just does nothing. :  
(Version 3.1.8)

NLC  Had an issue with the last version where it stopped updating songs after a while and just stuck forever on 'Loading...' I'm not sure if it's fixed in the new version yet, but we'll see. So far it's working _mostly_, though there are some pretty popular songs that it can't find lyrics for, and when trying to paste the correct lyrics in, it fubars the text so it's unreadable (all posted on 2 lines, then over itself for multiple lines).   
(Version 3.1.8)

JON.KANTRO  Great widget. It does exactly what it was intended to do and more. The only thing I would suggest is adding a 4 or 5 second delay in adding the lyrics to the metadata in itunes, otherwise it causes a little pause in the song.  
(Version 3.1.6)

TICE  Woow, this thing seems to work fine! Lyrics are optional also possible to save in iTunes. Great! Well done, thanks! : )  
(Version 3.1.4)

SONICCOW  This version seems to be working now.

I downloaded the previous version, but after about 3 days it would just stay on "loading".

Make sure you delete your plist file before downloading this updated version.  
(Version 3.1.4)

ROBBY.IS.ON  The widget looks very nice and I really enjoy it when it works.

I'm saying "when it works" because sometimes the lyrics aren't displayed ("loading..." for ages).

Also, 36MB of physical memory for a dashboard widget is too much.  
(Version 3.1.3)

RORO01  Thanks to the developer. Now we have four alternative places to view lyrics (apart from iTunes/File/Get Info/Lyrics):

This widget - in Dashboard.

FetchYourLyrics - in an application window.

DesktopLyrics - directly on the desktop without a window.

Cover Version - in an iTunes Visualizer.

The decision is yours!   
(Version 3.1)

JMAHON24  This is really a great piece of software. It looks good and does Exactly what it proports to do and does it extremely well.   
(Version 3.1)

YICHEN Z  This is the widget I've always kept since I first installed it.

No doubt the best in Lyric and album cover category.

I am very glad to see this long-waited update.  
(Version 3.0.4)