You can change your connection settings to a lower bandwidth by selecting the "low" or "medium" stream quality in the LAUNCHcast player window. If you're surfing to other web sites or pages while you play your station, loading those web pages reduces the amount of bandwidth available to stream music to your computer.
Another cause for skipping could be that your computer's processor is maxed out. Try quitting other applications while you are listening to LAUNCHcast.
For optimal performance, try adjusting your player's buffering:
For Media Player: