These are the 3 basic stages of internet broadcasting:
I: The Source (You)
Your computer mixes together the audio sources coming from your soundcard (which can be Mp3′s being played, live voice or other inputs from CD players etc). It then makes them into a ‘stream’ of data which is sent to…
II: The Server (Us)
Our ShoutCast Stream Server will receive the audio stream coming from your PC and then redistribute it to …
III: The Listener (Everyone Else)
Anyone in the world with an internet connection can then connect to our ShoutCast Stream Server using the servername and port provided to you in your customer control center. They will be able to hear everything that is going on at your end – so anything you "feed" to the stream server, they can hear!