Hi everybody.
I love DIY, I love Arduino. I thought you might like this project of mine. It's one of my first Arduino projects.
I call it the Arduino Wifly Mini. It is controlled over WiFi (via the Wifly shield and UDP packets), can be controlled with a PS3 or XBOX360 controller, or a Logitech G27 steering wheel. It has a first person view and force feedback.
Quick overview video here:
and a detailed blog post here:
http://www.blairkelly.ca/2012/04/20/arduino-wifly-mini/
I hope you like it. 
And if you're trying to do UDP communications with Wifly, you might find some answers there or in my very messy code.
Best,
BK