Just moved on old client over from V1 to V2 DNAS and we had to unchecked the public option on his SAM as it was connecting to the server but not streaming any music after doing some searching I found that there was something were it would reject all client connection request until it detects that it is queued for listing on the YP.

Is this an issue with the Centovacast set up or with his? Un-checking the public stream option made everything work but he wants to be on the YP

No, it's an issue with DNAS2, and has nothing to do with Centova Cast.  You have to set up an authorization hash if you want to run a "public" server ("public" meaning "advertised in the shoutcast.com directory listings").  There is a detailed page about this in the SHOUTcast wiki.