Hardware magician Nathan True has made an article on how to accomplish this

It’s a problem many of us are familiar with. We have an extensive music library on our computers and iPods/portable music players, and we would like to listen to it at home, but our computers are too far from the stereo, or the rest of the family wants to listen to music while you go out with your iPod. Or perhaps you’d like to listen to Shoutcast radio stations on your stereo at home (something portable music players are at the moment largely incapable of).

Click here to See that Article - How you can make it on your own