Sounds like a fun project.
I think the only problem you might run into is you have to use the inverse access method when you think about accessing sound
cards. What we hear as input (sound coming out of the sound card) is considered output to the computer, and what we consider output (the microphone/line-in feeding the sound card) is considered input by the computer. If you want to capture what your computer is outputting (what you hear coming out of the speakers), you will have to feed it back to the input of the sound card as there is no way to read from an output stream. This can be accomplished by using a audio wire jumper between the line-out and the line-in ports on the sound card.
Step 1 - Read Data From Sound Card
Java Tutorial - Java Sound API - Overview - gives an overview of how to access sampled data in Java.
Java Tutorial - Java Sound API - Capturing Audio - explains how to read the raw sampled sound data in Java.
Step 2 - Send Data Over Network.
You'll need to figure out if you want to use sockets (TCP - guaranteed delivery) or datagrams (UDP - out of order/lost packets possible).
Sockets:
Java Tutorial - Custom Networking - Sockets - gives an overview of sockets.
Java Tutorial - Custom Networking - Reading/Writing Sockets - how to read/write to/from sockets.
Datagrams:
Java Tutorial - Custom Networking - Datagrams - gives an overview of datagrams.
Java Tutorial - Custom Networking - Datagram Client/Server - how to create a client/server datagram pair
Step 3 - Read Data Off The Network
(use the examples from step 2)
Step 4 - Write Data To Sound Card
Java Tutorial - Java Sound API - Playing Back Audio - explains how to write sampled data to the sound card.
Hopefully this helps. Good luck!