Once you have obtained the Infected UMD, your life will be in constant danger -- open sockets to other PSPs will allow any Infected user to "infect" the opponent's PSP system with their own personal player avatar virus, taking back valuable points and leaving behind traces of 'suckitdownitis' for the overcome PSP user. These infecting avatar viruses are not just mere amalgamations of wins and losses -- they will be living, breathing entities, which the infected player may spread to other systems in a viral outbreak. Clans are forming to engage in team matches to combat avatar infection and spread their unique avatar epidemic, but standard matches to the death are also bound to break out amongst citizens. The spread of infection will continue on as more and more players become 'Pwned.'
http://psp.ign.com/articles/579/579423p1.html
I have no idea how literally to take that. Whole article is written as an outbreak account. Sounds like a cool use of Wifi though, if its real. Semi-autonomous conquest mode.
Other details gleaned from the article: Planet Moon Studios has a 3 game deal with Majesco for PSP and Infected sounds like a fall release.
IGN says there may be pics tomorrow.