I use a FM tuner through the line in of my soundcard, onto my network via a shoutcast server so that it can be played back via the play file commend built into the music player which means that full multiroom capabilty is possible too.
Personally I set up a few internet radio stations. Some show the current track in Winamp... and fortunately, Xlobby's Winamp integration is so good that I can display that in Xlobby even.