Basically I want to 'Re-stream' a shoutcast stream.
MP3 stream that is.
Tried searching around but couldn't find a way to do this. (It's an internet radio where only some of my friends get it without lag, so they could restream it.)
I don't know a lot about Shotcast and if you want to stream through that, I don't know what to suggest.
If you are saying that you have a MP3 file and you want to stream that, I would recommend either Windows Media Services off of Windows Server if you have a spare box lying around, or even just using VLC Media Player - it has an excellent built in streamer.
To do a proper relay of an existing stream I'd suggest installing SHOUTcast locally or on a hosted server (if your host allows it). Then take a look at sc_trans (SHOUTcast DNAS Transcoder 2), which allows relaying and can even be installed as a service and scheduled with a cron job if there's a show you're looking to relay automatically every day/week. We used this to relay a weekly show out of Toronto for awhile.
These links should help you get started:
SHOUTcast Download (Linux 32/64 & Windows 32/64)