Line In

Instead of streaming mp3's, is it possible to stream from my "line-in" port from my pc? if so, how?

i believe not because the music files need to be in a shared folder.

streaming from line-in would mean to stream non-blocking. what you want to stream is a constant audio stream. and that in real-time. only works with icecast or shoutcast. what you are talking about is real-time encoding and streaming, no static data to read from hdd but data-stream processing (cpu/ram).