I'll answer my own question:
The midi fakebook #1 contents are actually not in their own sub folder like #2,#3 & midi soundtrack fakebooks. All the songs are loose in the bb folder and when you generate a song list, something I hadn't done yet though it's an important 1st step, they are grouped in a searchable format. At least that's how it was on my hard drive.

As for adding two lines of lyrics the process involves the "line" button in the lyrics mode and adding lyrics in multiple choruses.

I'm learning a lot about what I legally can't do. It all predicts a bleak future for my western swing revival compilation fakebook and practice cd. Spade Cooley is dangerously close to being a ghost. The professional approach would be to find out which songs are readily available to be reprinted with proper distribution of royalties and stick with those songs alone. It would take some work to contact the true copyright owners of songs from 1936 but it's technically possible.

Jim, can't you call someone at Hal Leonard and ask them to put this on their project list? It would save me a lot of time.

Everything Pak 2013 for Windows. w/16-pak add ons.
Jazz Guitar Masterclass
Instruments: Guitar and Piano
B.A. music from HSU 2001
M-Audio Keystation 49 USB MIDI controller
Dell Latitude E6500 4GB RAM Windows 7 32bit
ASIO4ALL
Coyote WaveTable