Through an interface, Kai converts the adhoc signal of your Psp into an “Internet” one right before bringing back to adhoc to your opponent.

Adhoc signal from you⇒Internet signal⇒Adhoc signal to your opponent.

Only some cards are able to run such a process thanks to the fact they own a plugin called the Psp xlink mode. The Internet signal reduces the distance as much as it can between you and your opponent: the more close you are to each other, the better the reduction will be. For example, a 60ms ping will correspond to a 5 feet distance between the two systems.

That is why this process is a trick: your Psp is not supposed to be able to detect an another in a range which exceeds 100 feets but, using Kai, it becomes possible.

Kai belongs to the tunneling softwares family among Adhoc Party. Those two work in the same way: Adhoc Party is an official Kai. One is not better than an another when it is about lag. The advantage of tunneling is it does not depend on your computer's specifications but on the quality of your connection(like P2P applications or downloading in general): you will not lag more on Kai than on Adhoc Party. Here is a video proof if you are interested.

http://www.youtube.com/watch?v=TNPrW_9xsDg

According to that concept, whenever you want to play a Psp game on Xlinkkai, you have to get to its adhoc's feature: it could be a hall(Monster Hunter), a lobby (Dissidia) or any other adhoc's screen. Your Psp starts to “spread” an adhoc signal around it: get your adapter connected to it and run Kai.