Grover,
If you convert your .kar file to wave you will be able to create a cdg file by using Kpro.
You will need to re-enter the lyrics.
You will need a SB card (ideally an Audigy) an a Wave Recorder, the one that comes with SB is perfect.
By playing a Midi or kar file using a SB card with good set up would give you sound to be played back with Microstudio.
By the way, if you use Karawin you will be able to extract the lyrics from your kar or midi file!
www.karawin.com
Good Luck