First off, here's a link to the setup pic eLhabib created:

http://img.photobucket.com/albums/v7...forDWL-122.jpg

Second, here's something I figured which made my connection horribly unstable until I fixed it:

When my DWL-122 tries to scan for available connections, it finds TWO ad hoc connections from my PSP

PSP_AUCUS98612_L_ (unencrypted)
and
PSP_AUCU98612_L_ (WEP encrypted)

by default, my adapter always tried to connect to the ENCRYPTED one, thus ensuring my connection would be unreliable all the time. I had to scan the unencrypted network and manually configure it, then REMOVE the encrypted network from the list of preferred networks.

It's been running like a dream since!!!