1> Is it possible to consider VPS for the same?
Ans. Yes shout cast can be run on VPS's, but due to its requirement of high resources, it is recommended to opt. for a high end VPS, even a semi-dedicated server can be an option. It depends on the web hosting provider actually.
You should get this confirmed from someone from Web Hosting UK.
2> What is the procedure to install shoutcast?
Ans. I found an article on Web Hosting UK's blog about the procedure. Please refer :
Steps to install shoutcast
Hope it helps.