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Ancient PC running Ubuntu 8.04.2 (a.k.a Hardy) is a gateway (192.168.1.4) connected to ISP line through ethernet-to-optical adapter and does a great job NATing internet connection to other devices. Shorewall firewall is always up and running.
1) SSH to your router.
2) Open file /etc/shorewall/rules with nano text editor and root privileges
3) append these lines
ACCEPT all fw:224.0.0.0/4
ACCEPT all net:224.0.0.0/4
ACCEPT all loc:224.0.0.0/4
4) Save file and close editor.ACCEPT all net:224.0.0.0/4
ACCEPT all loc:224.0.0.0/4
5) Restart shorewall firewall by issuing command sudo /etc/init.d/shorewall restart
6) Navigate to Udpxy at SourceForge and download latest package.
7) Extract, .\configure, make and make install it.
8) start udpxy daemon with udpxy -a eth1 -p 4022 -m eth0 (where eth0 is outer adapter)
9) all work on gateway is done, return to a computer you want IPTV to be watched on
10) create new *.pls file. Enter lines
#EXTM3U
#EXTINF:0,Channel01
http://192.168.1.4:4022/udp/239.255.1.1:5000
#EXTINF:0,Channel02
http://192.168.1.4:4022/udp/239.255.1.2:5000
#EXTINF:0,Channel03
http://192.168.1.4:4022/udp/239.255.1.3:5000
...
#EXTINF:0,Channel14
http://192.168.1.4:4022/udp/239.255.1.14:5000
11) Save file and close file.#EXTINF:0,Channel01
http://192.168.1.4:4022/udp/239.255.1.1:5000
#EXTINF:0,Channel02
http://192.168.1.4:4022/udp/239.255.1.2:5000
#EXTINF:0,Channel03
http://192.168.1.4:4022/udp/239.255.1.3:5000
...
#EXTINF:0,Channel14
http://192.168.1.4:4022/udp/239.255.1.14:5000
12) Open playlist with VLC media player and enjoy brainwashing!
13) Repeat above steps 9-12 on every other PC hooked to your LAN.
14) Ask me if something goes wrong. (-:
Final thoughts: I chose udpxy way cause using igmproxy hogs wi-fi traffic.