Cam & Mic work fine; MP3 streaming does not
 

I need a little help. I have been struggling with this problem for a couple of weeks. My webcam and microphone work fine. When I attempt to stream MP3's (using WinAmp 2.91) with the video stream from the webcam I get no sound. I have tweaked every setting I can think of and I've made no progress. I am not too happy with placing the microphone in front of the PC speakers :hang:

I have Windows XP Home. In "record control" of "Sound Recorder" I have selected "Wave." I am pretty sure I am doing something stupid. Any ideas?