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On the streaming vlc server: On the listening VLCs: To listen on your sending computer: Note that all caching values seem to need to be the same.

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Do not check the "display locally" box. It will stay silent, you will not hear anything, however, the stream is sent out. Tighten the buffering/caching: Start with a 20ms caching and increment by 10 until the stream is free of cutting out. In the startup phase it will always cut out a lot, but the stream will stabilize after about 5 to 10 seconds and be smooth. Open a second vlc client and listen to the stream as you do on all the others, same caching/buffering values.