I set up a 2.0 server on another port and low and behold it works fine with the web player other than the fact that it still doesn't show the artist or song info.
I go to shoutcast.com:
use the link to connect to the 2.0 test server... everything plays fine
use the link to connect to the 1.9.8 stable server... after the intro plays smoothly the music starts and still plays for one second then is silent for one second over and over.
The SAM Broadcaster encoders and the relays are exactly the same for both other than the port

OK no more being nice .. I'm pissed!!!

The 1.9.8 server no longer will work with SHOUTcast's web based player
Its obviously to force you to use the new software (like how they took away classic.shoutcast.com to force you to use the beta site)