Want to know how Gaikai works or how it will run a game like Mass Effect 2 on a netbook with a "single core Atom CPU"?
Engadget has you covered.
Below, you'll see how the game runs on the netbook used for the Gaikai beta. It looks fine to us, honestly.
That's not all either. Engadget also has loads of information on how Gaikai's servers work and how publishers can determine how much latency "makes for an acceptable session on a per-game basis" based on your internet connection speed.
It confused us a bit, but many things do, so just take our word for it and read up on it yourself.