I didn't have icecast2 set up though. I do now. But for it to work in MuSE, you'll have to use "blag" for a password, and change the mount point to blag.mp3 or blag.ogg depending how you are streaming. Icecast2 doesn't allow passwordless streaming.
Both icecast servers are running right now if you want to set up a stream. :)