I believe there are four or more ways that karaoke music is handled on the PC. Home entertainment systems use avi files to get the process done with a single computer file. The pro systems use cda plus cdg files, or mp3 plus cdg (zipped) files. In addition, there are a number of proprietary file formats that don't need to be discussed here.
The simple text lyrics display, that PowerTracks shows with kar files and some midi files should not be confused with karaoke graphics. Karaoke graphics files are somewhat more sophisticated, sometimes showing animations or photographic images. Some programs, like WinAmp, utilize and application extension to permit the display of karaoke graphics while a song is playing.
I tried to get PowerTracks to recognize a cdg file, but it will not do that.
Perhaps some future version of PowerTracks will have this capability.
In the meantime, I found a PowerTracks workaround, using two computers, and a multi channel audio input system.
Thanks You for your input.
FlaMusician