Mixwit was the previously mentioned/featured mixtape sharing site by Radley Marx and Michael Christoff, that got shut down by the RIAA in December 2008. Users with zero computer literacy could upload mp3s and share streaming songs with friends on it. The interface was cute--the tape progressed as the songs played.
Anyway, the second generation site, Mixwidget, is basically a way to let people continue to make and share mixtapes, but sharing it on their own servers and spending their own bandwidth, thereby limiting the creators' liability. After much legal fighting, Radley and Michael built a mixtape widget for the open source community before moving on to their next venture, cloud.tv. Mixwidget requires quite a bit more computer literacy than its predecessor.
Check it. There is an example tape on the site. If you hover under the tape controls will appear and you can hear (presumably indie, user-created) content. Skip ahead and back... Pretty neat.(From Radley and Michael)