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Darkwater, you will need a wireless router for this so that you can connect your PSP to the net. If you are looking for a cheap solution, then go with a Gigabyte wireless router like the GN-BR01G.
It's easy to configure. Currently I just use mine so that I can VNC into my PC from my PSP, also to do FTP transfers between my PSP and laptop and to control my winamp from wherever I am in the house.
Nopers, an Adhoc connection like that doesn't work between the PSP and PC and won't give you internet access.
Gigabyte wireless router like the GN-BR01G.
You should be able to pick em up for R500-R600.
Will a usb wifi dongle work with the psp?
Which Wifi dongle do you have cerealkilla?