I wanted to be able listening to my music from pretty much everywhere in the house while being able to keep track of the songs played using last.fm. So here’s an overview of the setup:
I use Amarok as the main audio player (with an iPod often attached to it) on my desktop computer from which darkice is taking its audio from and streaming in ogg/vorbis to an icecast server. Then I have a Zaurus running OpenZaurus directly connected to the actual sound system through a 1/8 to RCA cable. MPlayer is used on the client side since I ran into numerous problems using xmms for OpenZaurus while listening to streaming audio.
Setting up Darkice is pretty straighforward: just start from the default configuration file and remove any useless sections (icecast-0, shoutcast …) Then make sure you toggled record on the “volume” slide in sound panel. That way, darkice will stream all audio that is fed to the sound card.
