Summarised; you get the skipping because your connection can't handle the amount of data that is sent over it. AOL doesn't (or shouldn't) influence it, but your modem does. Since you're using a 56Kbps modem (which actually has only 33.6kps going upstream) this could very well be causing the problem.
Especially when you set the bitrate at which you're broadcasting too high (this always causes skipping if too many people tune in, even if you're on a very fast connection). There is a simple formula to calculate the optimal bitrate:
#listeners = (.9 x upload speed)/broadcast rate
The last option is you're using the server version 1.7.0, which has a bug that causes skipping. In that case just upgrade to the newest version, or use an older version and all should be fine.
I hope this made things clear. It wasn't as summarised as it was supposed to be though :-)