you can put a media player onto piczo that will play a stream.
heres an example, taken from HabboFM
as long as you have a shoutcast server you can adapt this HTML to work for your own needs
<object classid="CLSID:6BF52A52-394A-11d3-B153-00C04F79FAA6" name="player" width="180" height="35" standby="Loading" CODEBASE="/CODEBASE=http:/activex.microsoft.com/activex/controls/mplayer/en/nsmp2inf.cab#Version=6,4,5,715">
<param name=" id="player" url=http://www.habbofm.co.uk" value="true">
<param name="CONTROLS" value="Imagewindow">
<param name="ShowStatusBar" value="false">
<param name="src" value="http://www.habbofm.co.uk/habbofm.asx">
<param name="url" value="http://www.habbofm.co.uk/habbofm.asx">
<param name="autostart" value="true">
<param name="autoplay" value="true">
<param name="Controls" value="playbutton">
<param name="uimode" value="mini">
<embed src="http://www.habbofm.co.uk" width="180" height="35" autostart="true" controls="playbutton" showstatusbar="false" url="http://www.habbofm.co.uk" autoplay="true" uimode="mini"></embed></object><br><font face=Verdana size=1><i>Provided by <a href=http://www.habbofm.co.uk>HabboFM</i></a>