Setting up free Internet Radio broadcasting can be done in two ways.

1. Setting up online by pre-recorded audio file (music playlist, interview, etc) as online audio streaming by yourselves or by using any free service.
2. Setting up live Inernet broadcasting through softwares like Icecast, Pirate Radio etc.

Way I: Online Audio Streaming:

One can convert the website/blog in streaming internet radio station in 3 steps.

Step I:

Create your audio file (mp3 or wma ) and upload the same to a free file hosting server or place it in your own server.

Step II:

Open your notepad and type

http://www.somehostingsite.com/uploadedmp3.mp3 http://www.somehostingsite.com/uploadedwma.wma

and save the file as audio.m3u in the same location where you can saved or hosted the audio files.

http://www.somehostingsite.com/audio.m3u

PS: Replace <somehostingsite.com> with your own URL

Step III

Put the below given code in your website or blog and can go for streaming audio,

<OBJECT id="VIDEO" width="320" height="240"

style="position:absolute; left:0;top:0;"

CLASSID="CLSID:6BF52A52-394A-11d3-B153-00C04F79FAA6"

type="application/x-oleobject">

<PARAM NAME="URL" VALUE="http://www.somehostingsite.com/audio.m3u">

<PARAM NAME="SendPlayStateChangeEvents" VALUE="True">

<PARAM NAME="AutoStart" VALUE="True">

<PARAM name="uiMode" value="none">

<PARAM name="PlayCount" value="9999">

</OBJECT>

If you are lazy enough to do the above set of things then you can go to singingbox.com and upload your file, create a playlist, customise ur player and just simply embed the code in your site.

Way II: Internet Radio station using Icecast:

Download Icecast. Follow the step by step guide in configuring the icecast to setup you Internet Radio station and broadcasting with pride.

There are lot of commercial sotware avalilabe like Pirate Radio which can make your job easier. There are other solutions like Shoutcast but it requires complex configuration and I am not convinced with that. For shoutcast configuration refer to the video attached below.

Hope the above tutorial helps and clarifies everythin.