http://superuser.com/questions/156474/how-to-record-a-mp3-m3u-stream-using-vlc

These instructions show how to capture/record directly from a MP3/M3U stream of a radio station, using VLC player, setting up VLC via its graphical user interface (GUI). Using Windows version of VLC but instructions should be usable for other platforms.

Please discuss if necessary and contribute. These are working instructions.

Please abide by copyright rules in your locale. The safest option is to record for your own personal use.

The reason why I am posting this is to give people the opportunity to record programmes for listening at a time that suits them as many stations, particularly smaller, community based ones are not well set up for podcasts/listen anytime/listen again. The intention is that you would discard the recording after use if you wish, to avoid any copyright issues. This is a benevolent endeavour aimed at increasing a station's audience by allowing timeshifting of programmes to suit listeners personal schedules.

Find the website of your favourite radio station, e.g. resonancefm.com. If it uses a .m3u playlist file for streaming, locate the page that holds this within the site. You need the .mp3 file stream url that the .m3u contains. So, first save the .m3u file

Open the file in your text editor

Copy the .mp3 stream URL

Run VLC player. Select open network stream.

Paste in the copied URL from earlier.

Click the thin button with the 'o' symbol at the bottom, and from the drop-down menu, select 'Stream'

Click 'Destinations'

Activate transcoding should be unchecked - we don't need to re-encode the mp3 stream. For 'new destinaton' select file, click Add and choose a path and filename for the recording.

Click stream button on bottom right to start the streaming to the file.