I am not aware of any limits to the size of the files or the lyric information therein.
The text is always US American ASCII codes 32-127 (i.e. the simple ones). The font is not something defined by the SMF file; if the keyboard / sequencer packages gives you a choice thats just your good luck.
I suspect that lyrics placed between [] characters are interpreted as comments; I don't think appear on the lyric playback screen on my Yam PSR2k (they definately dont on a PSR630)
I've always used Cakewalk to add lyrics to SMF files. Within Cakewalk each word/syllable is associated with a specific melody line note; syllables of words are defined using hyphens (which are removed by Cakewalk when saving the file as an SMF). I think the SMF specification allows lyrics to exist in isolation (each lyric has an associated time) but trying this in Cakewalk just confuses things.
You can paste text into the lyrics editor but you'll still need to indicate syllables of words using hyphens; there is a "hyphenate" option which tries to do this automatically but I've never found it that reliable.
Hope this help!
[This message has been edited by MacAllcock (edited 02-12-2003).]
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John Allcock