Paul,
In order to be able to import .txt files successfully, you must have them setup in the exact format that MediaShout requires. I have attached the Nothing but the Blood.txt file that shows you an exported song. Each song must be setup in this exact format. If so, it will import in the correct stanza's and play order.
Here is a link to our User Guide that further explains this: http://www.mediashout.com/guide/prepare-a-lyric-text-file-for-import
I hope this is helpful!
Thanks,
Ryan Zeeck