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Its only needed if you plan on tuning your car. When you increase HP and torque, you need to increase clamping pressure and this is what xHP does. I agree with Buddyboy, don't bother with stage 1. Stage 2 and 3 is all you need. It takes some time trying to get everything set up to your driving style, but the OTC maps are fine.
I'm pretty sure most people that have xHP set it to stage 3 anyways. I have a Bootmod3 tune with some basic bolt ons that require me to need xHP. The wifi adaptor is a moot point as it works with BM3, xHP, Bimmercode, and Protools.
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