having THROWN myself into this business like a lunatic the past couple days, I think I can be of SOME assistance.
So primarily what you want is to be live stream broadcasting right? ie, you talk into a mic, play what you want, the full radio treatment?
There are a few ways you can do this.
You can use something like icecast/BroadWave/Broadcasting-software.
com, since you don't want to stream songs from a server you're going to want to use something like BroadWave
www.Broadcasting-software.com has an interesting free program which needs just 2 things. Your song files, and some FTP space on a webserver, which your friend can provide. You arn't streaming any FROM to server, more TO the server. The concept behind this program is that it uploads about 5mb's worth of data to the server, and the ISP provider amplifies the stream to all the people who connect.
This way you can connect up to 500 people on a regular broadband connection! However many hosting companies that have shared hosting don't like this, and even forbid it as it puts a somewhat heavy strain on their servers.
This tool also comes with a "tuner" program which users can download if you want to also stream pictures with your broadcast. If not, they can connect through a standard .asx file generated by the program to connect to your stream.
BroadWave on the other hand is your run of the mill broadcasting tool. It's a very powerful tool in the functions it lets you do, more suited towards hardware oriented broadcasting to be honest. Has some mad features that can handle a lot of hardware setups.
Icecast, didn't look too deeply into it, but I hear good things :/
No flash player, what-so-ever