First of all, have you checked your Audya manual at page 117... it's all there. Just do what it says... and it works.
One tip I will add though is that I personnally never put more than ±33 charaters on a line because that's about how many the window in Audya will show (when in Zoom mode). So when I type my text in NOTEPAD, I use the font Lucida 12 regular. I also shrink the window of Notepad so that only ±33 characters can be placed, after that the nex word moves to the next line automatically.
Also, since you can only see 6 lines of text at a time in Audya, I arrange my text in Notepad so that all paragraphs are logical, skipping a line as needed to make text more readable. Then you save the text with the same name as the file and transfer the text file to same folder as the song (MIDI, MP3 or WAV). When it's time to play the file, you press RECORD and with the down arrow and advance the text as I sing it. When done, press Save.