We\'re implementing a program for Android phones that plays audio streamed from the internet. Here\'s approximately what we do:
I haven't tried this, but I believe you can give the media player a file descriptor:
public void setDataSource (FileDescriptor fd, long offset, long length)
Maybe you could write the decrypted mp3 out to a file and play it using the file descriptor. This might even work for streaming assuming you know the file length ahead of time. If it works, it would be a lot simpler than doing a localhost webserver.