In the Preferences window, select on DSP/Effect in the Plug-ins section.
Select the Nullsoft SHOUTcast Source DSP, and click Configure active plug-in:


Click on the Encoder tab, select your encoding preferences.

If you have a fast internet connection, you can select a higher bitrate.
AAC encoding will give you better quality at the same bitrate as MP3.

Each user that is connected will require this much bandwidth to listen to your shoutcast stream.
If you select 96kbps and you have a 256kbps upload, you should be able to stream to 2 users.

96 x 2 = 192 (roughly the bandwidth required for 2 users)
256 \ 3 = 85.3 (less than 96)


Enter the IP address of your shoutcast server as well as the port and password that you setup in the shoutcast server configuration.
Click on the "Yellowpages" button to enter a name for your shoutcast server:



Click Connect

You will see a source connection message in the shoutcast monitor:


That's all
it's simple !!