Bear54LA, DJ & gt4726a info is all good and very useful and helpful..
Airfoil is not needed.:
iTune uses a stream called 'Shoutcast' and Shoutcast's ICY protocol is so simple that you can replicate it just by telling VLC to stream an MP3 or MPEG2 to HTTP with (raw/no) encapsulation.
Example.: We deciphered their MURL scheme enough to write our own streaming MURL. Here it is:
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#transcode{acodec=mpga,ab=192,channels=2}:duplicate{dst=std{access=http,
mux=raw,url=:8080}, select=novideo, dst=display, select=noaudio}
Note.: the above should be one long line, and do not add a space after the comma at the line break... As so...
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{dst=std{access=http,mux=raw,url=:8080},
What this says is to transcode audio to 192 bit/sec MPEG layer 2 (the MP3 encoder is much slower), to display the video only, and to stream the audio to HTTP port 8080. Copy and paste this MURL to the "Choose a stream output" input box of the Stream output page of VLC's preferences. You'll need to check "Advanced" to see this page. Don't change any other streaming controls.
or try to bypass Transcoding by.:
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#duplicate{dst=std{access=http,mux=raw,url=:8080}, select=novideo, dst=display, select=noaudio}
Play a DVD with these settings, and you should see video with no audio. Open iTunes and go to Advanced -> Open Stream. Tune to icy://localhost:8080 and select your AirTunes speakers. You should hear your movie with a considerable delay. On my computer, this delay is reliably 2.4 to 2.85 seconds. On the audio page of VLC's prefs, put in -2400 to -2850 for the desynchronization compensation. Close your movie and open it again (you have to do this for any preference change to take effect, it seems). When your movie opens, it should be more closely synchronized. If it's not perfect, you may need to fiddle with the compensation. Pausing the movie, or clicking through menus, will require some patience since everything is affected by the audio delay but after setting it up generally if the sound is still a little out you can in VLC just hit F and J to tweak audio delay to - and +..
The volume control in VLC seems to have no effect, so you'll need to use the one in iTunes. Seeking in a movie is VLC's weakest point; in the beta version, you'll need to pause before you seek or it will probably crash though release 0.8.6b may be better at this now (fingers -crossed).
Note.: Incidentally, playing VLC's streaming video sound via your Airport, Firewire or LAN is easy - just tell another iTunes to look at your video-serving-computer's local ip, port 8080 (eg,
http://192.168.1.3:8080/) and iTunes will pick up the stream easy as pie.