Similarly for me, I can understand spoken english almost perfectly easily but I'm having a hard time understanding even a couple words from an english song even if I try hard. (native language: french)
This must be true. However, once I've heard a song 20-30 times, it no longer causes distractions. Then again, when I work on a problem that takes 100% of my thinking power and concentration, I have to press pause, shut the door, and close my eyes.
I'm beginning to think I'm the only one who doesn't. Songs with lyrics are better for me than pure instrumental songs... I code best to europop and hip hop.
[edit: and by "hip hop" I mean gangsta rap, not stuff like Digable Planets.]
Strangely, I only have a problem with lyrics when I'm not singing them. That, of course, doesn't take into account to possibility that while singing, others might have a problem with me. ;-)