Note: This is a description on how to install and use a homebrew internet radio station, not a tutorial on how to use on PSP(all of the tools are already packaged together by me and shipped with a launcher I made so it doesn't really teach that).

That note is just there to justify this thread's placement.

The following is a collection of files I either made or assembled together(many files are from VLC and are not my own) that allows streaming of radio to any PSP firmware 3.80+*

The asterisk is there because I have only tested the radio player on my PSPgo running FW 6.20 and the streaming software on my PC running Windows 7 x64 Ultimate. However the anticipated requirements are the following:

PSP running any firmware 3.80+ Official or otherwise
A account
and a PC with
---Windows XP SP2 or Later Framework 2.0(If anyone really needs to get around this he/she can PM me, it will work without it but the GUI I made for managing VLC will not work and batch scripts must be used instead) AudioScrobbler software installed

How Does it Work?
Basically the app is set to stream out what it is playing to a port on localhost. VLC running with special commands takes this stream and makes a new one that is more suitable for play on the PSP( itself makes a new stream for every song, bad for internet radio streaming). Finally a webpage I set up in conjunction with an Internet Radio shortcut that gets installed to the XMB loads the stream set up by VLC and plays it. Simple.

How Do I Use It?

Ok, to get started make sure you have the software downloaded and installed on your computer. If you don't you can find it here: Download software

Now download and extract LastFMListener to somewhere you can find it later.

While we are already downloading everything, get your PSP and navigate to the following address in its web browser:
Save the file when asked. This places the icon for in the Internet Radio section of the XMB.

Ok, now that downloading is out of the way lets set up the software to do what we need it to. Assuming is already set up, go to Tools>Options>Radio and set the external streaming port to 1710
Click Apply, then OK, and then close and restart sure it is closed, not just hidden in the taskbar)
Now that the software is all set up, begin listening to as station with it.

After starting a station on, find where you extracted LastFMListener and start LastFMListener. Stop at the first popup screen.

LastFMListener should now be telling you what your local IP address is. Now grab your PSP and go to Internet Radio under Network. Press X.

Select and wait for it to load. Allow the plugin to run when asked.
When prompted for an IP address, insert the IP that is stated by LastFMListener. After inserting the IP, press OK. for PSP should restart.

When asked to insure LastFMListener is started, press OK on the popup LastFMListener made that we kept open earlier. Accept any security or firewall messages that occur. A red window should now say LastFMListener is running. Also, after a few seconds of the red window appearing should stop playing the radio station over your computer's speakers. This means LastFMListener is getting the feed sucessfully.

Press OK on the PSP.

The radio station should begin playing on the PSP shortly.

Note: If you feel the connection is buffering too often, press stop, wait for the fragment of the page to turn white then back, then press play at the top of the screen on the PSP.

Note:Pressing stop tells LastFMListener to stop streaming and allow the PC to play the radio station again. Play has LastFMListener take over the stream again.

Note: Play takes longer to take effect than stop does.

So.. How do I do this again after I did it once already?
Luckily its a much simpler process
Once everything is set up you can just begin listening to a radio station on your computer, start LastFMListener(without stopping at the popup), and select from the Internet Radio section on the XMB of your PSP.

Told you it was simpler.

Known Issues
Reliability of the stream seems hit-miss. Sometimes it can be flawless for hours, others it buffers every minute. Normally stop then play fixes this. Make sure your connection from your computer to your router and your PSP to your router is good too. If all else fails, leave the player with circle and start it again. It will eventually get decent

The beginning of a new song plays over the PC speakers for a few seconds.
This is because of how makes a new stream for each song. Those few seconds are the intervals in which VLC is trying to get the new feed. Sometimes VLC does not get the new feed. Use Stop/Play when this happens.

Songs end and start seconds before/after they should.
Basically same reason as above.

Useful things to know:
You can right click on the LastFMListener window. Doing this allows you to end the LastFMListener server(X button does this as well), Monitor VLC(you can stop or pause the stream from here)(Helpful Note: Another thing to fix a poor stream is to pause here, then press play on the psp a few seconds after), and look at the about text for LastFMListener.

Ports: is using 1710 locally. No outside connections are allowed to it.
LastFMListener is using 1711 to every IP in the local network. Note that external, public computers can get the stream if allowed by the firewall but they are not permitted to access the services that allow control of the stream from a browser.

The Stream:
The stream is broadcasted on: http://YOURLOCALIP:1711/lastfm.mp3

If I forgot anything let me know