Thanks for your report, it works fine here with Gutsy Gibbon, test case:
open rhythmbox -> Radio -> Add new Radio. it reproduce the radio for me
here, not confirming, can we get the output of: rhythmbox --debug
&>rhythmbox-debug.txt
** Changed in: rhythmbox (Ubuntu)
Importance: Undecided => Low
Assignee: (unassigned) => Ubuntu Desktop Bugs (desktop-bugs)
Status: New => Incomplete
** Tags added: likely-dup
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Cannot play a radio stream from Rhythmbox
https://bugs.launchpad.net/bugs/159266
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