These are instructions for people using their own pc as a server. For setting up a remote server please go here.
When you have read all of this AND read it again and STILL have problems then read TROUBLESHOOTING at the bottom of this page.Any and all questions AFTER you have read this should be directed in a clear and intelligent manner on the Shoutcast Forum.
Firstly you will need winamp, any version as long as not version 3. You can download it here.
You will also need to download the DNAS plugin found here.
Configuring this can be slighty difficult.
Open up the 'Edit Shoutcat DNAS configuration' file from your start menu in notepad or whichever text editor you prefer to use. Depending on your internet connection speed you will be not necessarily be able to support 32 users max, just put 5 in that part if you have say a 512k connection.
Scroll down to the password part and add your own one in here.
Next Portbase, make it easy for yourself and leave it on 8000. Save and exit.
The only other thing in here you MIGHT need to change is the 'Yport=80' part if your ISP caches your true IP number, in this case change it to 'Yport=666'.
Next you will require the DSP plug-in to make Shoutcast work with it all.
Direct download for DSP is here.
Now for the not very tricky bit. Open up winamp like so 
Making sure that winamp is the selected application, press CONTROL P and a box will open up. Have a look through until you see Plug-ins and select DSP/Effect 
Choose the one you see selected here and configure, just tell it YES a lot and OK, then close that window. With any luck a new box will pop up named Shoutcast Source and this is where we start the fun.
Right. Follow these steps to the letter, please.
Output tab Connection Output configuration address is 127.0.0.1 or localhost. Use one or the other, not both.Port 8000. The password is the one you put in DNAS configuration. Encoder 2.
Still on Output tab press the Yellowpages button. Make server public. Description (pretty self explanatory) Genre .. again explains itself. Encoder tab Encoder 2. Mp3 Encoder (usually), Set your output to 24kps mono unless you have your own data centre in which case you can put anything you please in there.
Input tab If using winamp as your sound source, then choose winamp as your input device, if you're mixing mp3s on another program or using decks then choose soundcard input.
You're done, open up the main shoutcast DNAS from your start menu, then open up winamp so Shoutcast DSP pops up, press connect and it 'should' work.
The address that you give to your listeners is your external IP number, this is found by visiting whatismyip.com. You will give out your address as http://yourip:8000/listen.pls
Troubleshooting.
[yp_add] yp.shoutcast.com gave extended error (Cannot see your station/computer (IP: xx.xx.xx.xx:8000) from the Internet, disable Internet Sharing/NAT/firewall/ISP cache (Connection timed out))Try this first.
Your firewall and/or router MUST be configured to allow ports 8000 and 8001. If you are unsure of how to do this then please visit portforward.com for assistance in both router and firewall problems.
Also see this thread as an example
This is NOT hard to do, please do not ask for help with it, portforward.com has an answer for every set-up.(if it doesn't work after this then see the Yport part near the top of this page)
You may not be able to hear your own stream via your own IP, this is because some routers and ISPs do not allow what is called local loopback. A way to check if you're able to stream to yourself is to type http://localhost:8000 into your browser. If this works then you're most probably fine.