You can use shoutcast (shoutcast.com)to host a streaming audio server, or VLC to host both video / audio streaming services from your computer. Do note that any form of streaming can take a considerable level of bandwidth, and many ISP's do not permit users to host servers so ensure you double check your terms of service before hosting any servers on your broadband connection.
Right... it took a while, but I have shoutcast set up, and its streaming mp3s. I can't seem to set the input to "Soundcard Input" and still play music, but I asked on their forums. If anyone knows please tell me!
Also, does anyone know AOL's rules on it, I can't be bothered to keep contacting them, lol.
1 last thing. How would I "embed" the stream into a website? IE: if I had a .wmv file on my server I could embed it to play in a web page, but I can't seem to do it with this stream.