Dylan Jobe from the Warhawk team has posted a lengthy FAQ on the PlayStation blog where he clarifies, among other details, how the player-hosted matches will work. Essentially, the system tests the host’s connection speed and makes a determination based on that about how many players the game will support, 8, 16, 24 or 32. From the FAQ:

[W]e… do a really quick series of bandwidth tests to determine how many players you will be able to handle. We spent quite a bit of time looking at the bandwidth requirements to make sure that the games that you host are not out of your league with regard to the bandwidth needed. We got a lot of comments during the BETA about players that were hosting 24 or 32 player games when they didn’t have the bandwidth to do so. This resulted in pretty crappy game experiences sometimes. Our updated bandwidth requirements should resolve a lot of this and we’ll be monitoring it and changing them if we need to… If you’re at school (college dorm or something) on a network you’ll probably be hosting up to 32 players, but the net is what the net is and you all know how it can change like the weather. If you have a really bad connection, then you will be hosting eight or 16 players.

He also talks about how there will be no way to run the retail version without the disc in tray, the fact that there will be clan support and that there is split-screen play but you can only have one headset active at a time on a given console, plus a lot more.