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please understand that it is quite hard for you to get a VPS for free, and if you get it, it will usually only last for very short term only.
consider getting those cheap VPS instead of asking for a free ones...
There are several free shoutcast host that provide what you need.
The only thing is, listeners have to load their ads, before the stream can be started.
If this is ok for you, try to go to http://www.listen2myradio.com/ and take a look at it.
I believe the best option for the OP, is a paid VPS, not something free.
Or else, we are going to see the OP come back here and making noise complaining all kinds of things, while he did not even pay for the VPS.