Karaoke Technology
A basic karaoke machine consists of audio input, a means of altering the pitch of the music (not the singer) and an audio output. Some low-end machines attempt to provide vocal suppression so that one can feed regular songs into the machine and suppress the 
voice of the original singer, however this is not very effective. Most common machines are audio mixers with microphone input built-in with CD+G, Video CD, Laser Disc, or DVD players. CD+G players use a special track called subcode to encode the lyrics and pictures displayed on the screen, while the other formats natively display both audio and video. In some countries, karaoke with video lyrics display capabilities is called KTV.
More Information is avilable at Wikepedia
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August 11th, 2006 at 5:47 pm
Some features that you may expect in your Karaoke machine
Microphone Inputs
Volume Control on Microphone Inputs - A separate knob to control volume on EACH microphone. Some machines doesn t offer such facility.
Pitch Control - Used to slow down or fasten the song which gonna change the dancing rhythm.
Disc Trays -
Key Control-
Echo - Add Echo to the voice of the singer
Repeat - Can repeat any word or phrase in the song as much times as you set it up to do
Delay - the time between repeated words using echo function
Cassette Deck -
Graphic Equalizer - Through changing their level you can adjust the song the way you like .
Built In RF Video Output -
Bass
Audio Output Jack(s) - you can enhance the power of the sound by run it out of it into an amplifier