DisplayServer does not do any "streaming" in the way you mean it. If simply serves the MP3 (or WAV) files to the client over HTTP. WinAmp and other clients with quite happily play MP3 and WAV files over a network in this manner.

When Mark's kftpd is complete it should be able to provide the same "streaming" that DisplayServer does. What you do need though is something to present the MP3s and WAVs in an intelligable way so that the user can select them.

This extra bit of code would use the data in the FIDs or the database to serve up the playlists to the user, either as M3U files or as web links or symlinks. This could either be dynamic, or just a process that you ran every once in a while.

If would be easier to do this if kftpd also gained the ability to be an HTTP server, looking at Mark's code for kftpd it should be very easy for someone to add a simple HTTP server. It would be even better if it could run simple CGI apps (to do the dynamic work of creating M3U files or web links on the fly), this would involve forking userland apps and attaching them to the incoming HTTP port which would be a little more interesting.