If you're using XMMS, Windows Media Player or any other mp3 player other than Winamp and Real (Real Media Player / identified as RMA), be sure to uncheck the extm3u option in the 'Options' area if you're having troubles with streaming.
The extm3u functions sends information to client about the streamname and the length. Some clients such as XMMS can't read/treat this information and just bails out.
If you still are having problems, check the stream location in the settings area. Be sure to click on the question mark for help and examples on the setting in question.