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ok found a better explanation of it.
INSTRUCTIONS/FAQ ON GAME SHARING
For the "sender":
1. Purchase and download a game from the Playstation Store
2. Go to account management for the account and delete the billing information from your personal information if the PS3 saved your credit card info
3. Change your password temporarily for the share
4. Give login info (email address and password) to the receiver
5. When the share is completed, change the password
For the "receiver":
1. In the PS3 XMB menu, add a new user account on your PS3 and sign in to it
2. Select the network on the XMB and create an existing Playstation Network account
3. Use the login information given from the "sender" to create the existing account
4. Login into the account
5. Enter into the Playstation store
6. Click on "Download List" on the upper right near the person's userID and select the game you wish to download and hit download
7. After game is downloaded, notify the "sender" that the download is complete so they can change the password to the account
8. Enjoy!
Q/A:
Q: Should I worry about misuse for my account?
A: If you taken the steps to delete your credit card/billing information and changed your password temporary, it should be safe. If you're paranoid about someone stealing your account, only share with people that you really, really trust
Q: Can't I just make a sub-account and use that to share the games?
A: Not sure if this is allowed, but someone could try and report the results
Q: I just received the game from the sender and the game won't play, help!
A: In order to play the game on your PS3, the game must be activated AND the user account that was used to download the game must stay on your PS3. For example, say you created user account "User1" on your local Playstation 3 and you downloaded a full version of Lemmings. After you download the game, you MUST keep "User1" on your Playstation 3 in order for the game to run on your PS3. If you somehow delete the user account, you must relogin with the sender's account and redownload the game. If the game is still on your HDD, simply redownload then cancel to re-authorize the game.
Q: Do I have to login with the sender's account to play the game?
A: No, it just needs to be authorized on your PS3. You can play the game using your account thereafter. Just do not delete the user account as mentioned above or else the game will be locked out.
Q: I'm trying to download the game from the Playstation store but it is not appearing in the store. Where is it?
A: Games that are purchased disappear from the store. You have to download the game going through the "Download List" screen on the upper right of the Playstation Store.
Q: How many times can I share a game?
A: The store says you can share up to 5 different Playstation 3's.
