First, ignore that diagram because it is basically just showing you how airtime works with information coming in and being sent back out.
If you are only going to be streaming files you don't need any devices as I said the Icecast server is a part of the Airtime installation and you would just set it up in the airtime interface.
For live streams the only hardware you need is a mic connected to your computers line in and a software encoder like BUTT. You can use a studio mixer as well as other hardware depending on what it is you want to do and how fancy you want to be but it is not a necessity.
Why don't you tell us exactly what it is you are trying to broadcast.
Gabor said:We use the airtime as internet radio, it is cool! :)
In that image we saw it can work as traditional radio station.
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