Well i have the samething happening to me with the psp's
Game sharring works on two PSPs, like if you are playing Grand Theft Auto on one psp and ratchet on another psp, however, you can't play two games at the same time with two PSPs on you.
But if you want to see how it works, you got to make sure that you are in a wireless area with a wireless access point and select the transmit function from an in-game menu then select "Game Sharing" from the other psp menu, once they recognise each other, a short download begins and the second player can then choose to play.
The use of RAM to store the games rather than on the Memory Stick Duo means that players cannot continue with the games after the PSP has been shut down or sent back to the "Home" menu - from which players usually access media functions and launch software from UMD."
I can't connect my psp on game sharing and on internet
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