This is basically how it works which means you must buy a compatible wifi card to play with your Psp on Kai: you can replace the Wifi max or the Planex in the picture by any other compatible wifi cards reported below.
Routers are not compatible with Kai (except the Linksys reported in the adapters setup guides): you could get your Psp connected to them as much as you want, they will not allow Kai to recognize it.
May you find here different guides which provide you step by steps through the setup process of your adapter, some tips to let you play in the best conditions as possible and everything else you need to know.
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.
