How does PSP interact with PS3?

You can play some content of your PS3 using your PSP, you can access the PS3 hard drive, even play some games designed for remote play.
 
It connects through wiifi, er, wifi. My brother has both at his house so I've seen him do it before. On the PSP you will see the ps3 screen and then you can scroll through menus and stuff just like it was a controller. At the same time, you can be doing something completely different on the ps3. We couldn't get it to play any games though. Like jledesma said, apparently there isn't a whole lot of games that work with it yet.
 
You can watch UMD movies from your PSP on your PS3, use the PSP as a keyboard when browsing the web on PS3.
 
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