I spent a good hour setting this up last night, and I ended up getting it to work. Well, to be more specfic, the actual setting up didn't take that long but it took a good while blindly navigating the menu's to figure everything out. I tried to play a few games with some Nips kind enough to humor me. The lag was horrendous, but the actual mechanics of it worked beautifully.
If anyone wants to try and set up a date to play, lemme know. I'm a relativly shitty Ky player whose still learning the ropes, but I'd love to get my ass kicked online. I'm curious if the lag would disappear if I'm playing domestic players.
Yup, I have a CFW PSP and was using a Japanese GGAC+ ISO and it worked without any trouble.
I fooled around with that tonight after ADHOC Party to see if it was a good alternative. Be warned, it seems that you need to connect your PSP to your PC wirelessly. A USB connection doesn't seem to work.