Here are the steps to play shoutcast stream in wp7.
1) Download the open source project from here
2) extract the file and check the folders in the project
you will find "Bin" and "src" folders. open "src" folder
3) Now you will find following packages:-
Shoutcast.Sample
Shoutcast.Sample.Phone
Shoutcast.Sample.Phone.Background
Shoutcast.Sample.Phone.Background.PlaybackAgent
Silverlight.Media.ShoutCast
4) Add Shoutcast.Sample.Phone.Background.PlaybackAgent, and
Silverlight.Media.ShoutCast in to your project
5) Now go to your main project(UI project) right click on Referencts and select add Reference
6) Select "Solution" in right pannel there you will find projects (Shoutcast.Sample.Phone.Background.Playback
Silverlight.Media.ShoutCast.Phone)
7) Check the box Shoutcast.Sample.Phone.Background.Playback project and click "Ok"
(Note:- if you dont want to play background audio than you can add only Silverlight.Media.ShoutCast.Phone to your project)
8) Now go to Properties folder on top of the References go to WMAppManifest.xml right click on that and open with "xml(Text) editor"(this is for vs 2012)
9) add the following lines below </Capabilities>
<Tasks>
<DefaultTask Name="_default" NavigationPage="YourMainPage.xaml" />
<ExtendedTask Name="BackgroundTask">
<BackgroundServiceAgent Specifier="AudioPlayerAgent" Name="Shoutcast.Sample.Phone.Background.PlaybackAgent" Source="Shoutcast.Sample.Phone.Background.PlaybackAgent" Type="Shoutcast.Sample.Phone.Background.Playback.AudioPlayer" />
<BackgroundServiceAgent Specifier="AudioStreamingAgent" Name="Shoutcast.Sample.Phone.Background.StreamAgent" Source="Shoutcast.Sample.Phone.Background.PlaybackAgent" Type="Shoutcast.Sample.Phone.Background.Playback.AudioTrackStreamer" />
</ExtendedTask>
</Tasks>
10) now rebuild your entire solution check to see if any errors in your build. if no errors found then your back ground audio should work
-Please comment for any quires.