Does any ne know where to get Royalty free music that actually contains lyrics as opposed to just instrumentals? Particuarly songs that would make for good wedding or live event backgrounds.

I don't know of any because I don't think there's much of a call for it. However, you might look into some of the creative commons licensed music sites like Free and legal music downloads - Jamendo (http://www.jamendo.com). You would need to sift through a lot of music to find what you want but there are some good search tools to help narrow your search.

I have used some Jamendo tracks in my works. I limit the tracks to those licensed as "Share Alike" and "By Attribution". There are tons of tracks, but you'll wade through a bunch of dross to get to the good stuff.