you can find the relivent answers here on how to setup your feed
some stations starting out only play "when online" or at the members preferd time you could go that way at the beginning. however a dedicated server or indeed shoutcast hosting are not cheap but it would depend on how many slots/bitrate you can find some great hosts here Radio Tool box
as far as licencing go i belive you will still need it weather your streaming a 30second clip or a full song,owning the cd with all the clips on means nothing due to when you buy a cd its for personal and private use only and not for broadcasting you may want to check here for licencing Loudcity
however there is a loophole if you play unsigned media or licence free you can find alot of this music online also and a quick e-mail to the group for permission is basicly all it takes and no licence is needed for this at all.
you can download alot of free "bells and stuff" wav files from many websites google is a usefull tool however sweepers and promos and adverts all cost.
i hope this helps somewhat how ever nothings free in the world of online broadcasting theres always a cost down the line